Question

Which of the following is an example of expansionary monetary policy?

The Fed increasing the money supply to push interest rates lower.

The Fed raising the discount rate for member banks.

The president signing an executive order to raise the minimum wage of government employees.

Congress passing a new government stimulus package.

Answer 1

A. The Fed increasing the money supply to push interest rates lower.

The federal reserve is the body that conducts monetary policy. Lower interest rates encourage spending, stimulating increased output.