Question

Expansionary monetary policy refers to the​ ________ to increase real gdp.
a. ​government's increasing spending and lowering taxes
b. federal​ reserve's decreasing the money supply and increasing interest rates
c. federal​ reserve's increasing the money supply and decreasing interest rates
d. ​government's decreasing spending and raising taxes

Answer 1

Expansionary monetary policy refers to the​ Federal​ Reserve's increasing the money supply and decreasing interest rates to increase real gdp. So the answer is C.