An Expansionary Monetary Policy Would and Would Eventually Increase the Money

question 8

Multiple Choice

An expansionary monetary policy would and would eventually increase the money supply.

• A)involve selling government bonds on the open market
• B)involve increasing the target for the overnight interest rate.
• C)reduce short- term interest rates
• D)increase short- term interest rates
• E)involve selling foreign- currency reserves in the foreign- exchange market