Question

What are the goals when a government uses expansionary monetary policy?

Answer 1

Just because the other dudes answer wasn't as helpful to me because im slow. It will be A) Increasing its money supply to boost the economy. C) increasing its money supply to speed business expansion and E) decreasing its interest rates to increase investment spending

Step-by-step explanation:

because im amazing <3

Answer 2

stimulating economic growth

Step-by-step explanation:

Expansionary monetary policies are the action by the Fed that aims at stimulating economic growth. They aim at increasing the money supply in the economy. Examples of expansionary monetary policies are open market purchases, reduction of the discount rate, and reduction in the reserve requirement ratio.

Expansionary monetary policies stimulate economic growth by encouraging investments and consumption spending. When the discount rate is reduced, interest rates reduce automatically. Banks will loan out more when they a lot of money in their custody. Expansionary monetary policies are applied when there is a slowdown in economic growth.