An expansionary monetary policy is a Fed policy in which

A. quantitative tightening may be necessary to increase longer-term rates.
B. forward guidance concerning raising the federal funds target range may be provided.
C. the administered rates may be raised to discourage bank and nonbank lending.
D. the administered rates may be lowered to encourage bank and nonbank lending.

Question

30-07-2024
Business

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An expansionary monetary policy is a Fed policy in which

A. quantitative tightening may be necessary to increase longer-term rates.
B. forward guidance concerning raising the federal funds target range may be provided.
C. the administered rates may be raised to discourage bank and nonbank lending.
D. the administered rates may be lowered to encourage bank and nonbank lending.

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-07-30T11:50:38-04:00

Final answer:

An expansionary monetary policy aims to increase the money supply and reduce interest rates to stimulate the economy.

Explanation:

An expansionary monetary policy is a strategy employed by the central bank to increase the money supply and reduce interest rates. This is typically done to boost aggregate demand and counter recessionary economic trends.

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