Which of the Following Generally Occurs When a Central Bank

question 52

Multiple Choice

Which of the following generally occurs when a central bank pursues expansionary monetary policy?

• A)the central bank purchases bonds and the interest rate increases.
• B)the central bank purchases bonds and the interest rate decreases.
• C)the central bank sells bonds and the interest rate increases.
• D)the central bank sells bonds and the interest rate decreases.

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