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Nastasia [14]
4 years ago
9

Classify each action as expansionary or contractionary monetary policy. reducing the discount rate. increasing the federal funds

rate. buying government securities. increasing the required reserve ratio.
History
1 answer:
professor190 [17]4 years ago
7 0

<span>When we talk about expansionary monetary policy, it is just a policy which inflates or increases the source of money of the country while contractionary monetary policy decreases or lowers the source of a country's money.</span>

 

So expansionary is:

reducing the discount rate.

buying government securities.

 

While Contractionary is:

increasing the required reserve ratio.

increasing the federal funds rate.

 

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