30-05-2024
Business

Answered

Expansionary monetary policy
can be conducted through
which of the following?
A. increasing the discount rate
B. increasing the prime rate

Answer :

GinnyAnswer GinnyAnswer

30-05-2024

Final answer:

Expansionary monetary policy involves increasing the money supply to stimulate economic growth by methods like decreasing the discount rate.

Explanation:

Expansionary monetary policy aims to increase the money supply in an economy to stimulate economic growth. One way to conduct expansionary monetary policy is by decreasing the discount rate, which encourages borrowing and investment. Another method is by decreasing the reserve requirement, allowing banks to lend more money into the economy.

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