Question

Which of these are goals of an expansionary policy? Check all that apply. a. increased available credit b. decreased available credit c. increased money supply d. increased inflation e. increased interest rates f. decreased interest rates

Answer 1

Answer:

a. increased available credit

c. increased money supply

f. decreased interest rates

Explanation:

Expansionary policy is a policy pursued by either the government or the monetary authority to stimulate aggregate demand in the economy. This can be achieved through the use of either the fiscal policy tool by the government or the monetary policy tool by the Federal Reserve.

The policy target of expansionary policy are any of the economic goals of the government, such as economic growth, control of inflation, favorable balance of payment, e.t.c.