Final answer:
An expansionary monetary policy with lower interest rates encourages investment, raises aggregate demand, and unleashes demand-pull inflation.
Step-by-step explanation:
An expansionary monetary policy with lower interest rates will encourage investment, raise aggregate demand, and unleash demand-pull inflation. This means that when the central bank lowers interest rates, it becomes cheaper for businesses to borrow money, leading to increased investment. Higher investment and increased spending by consumers raise the aggregate demand, leading to demand-pull inflation.