Which of the Following Would Be Most Indicative of a Shift

question 108

Multiple Choice

Which of the following would be most indicative of a shift to a more expansionary monetary policy?

• A) Rapid expansion in the monetary base, higher  short-term interest rates, and  a decline in the growth rate of the M1 money supply
• B) Rapid expansion in the monetary base, declining  short-term  interest rates, and  an increase in the growth rate of the M2 money supply
• C) A reduction in the monetary   base, higher  short-term  interest rates, and a decline in the growth rate of the M1 money supply
• D) A reduction in the monetary base, lower short-term interest rates, and a decline in the growth rate of the M2 money supply