joria3 joria3
  • 19-02-2020
  • Social Studies
contestada

5. What does an expansionary policy do to the money supply?

Respuesta :

KreekCraft2
KreekCraft2 KreekCraft2
  • 19-02-2020

Answer:

Explanation:

Expansionary monetary policy is when a central bank uses its tools to stimulate the economy. That increases the money supply, lowers interest rates, and increases aggregate demand. It boosts growth as measured by gross domestic product. It lowers the value of the currency, thereby decreasing the exchange rate.

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