Question

The purpose of expansionary monetary policy is to increase

the inflation rate

the GDP gap

interest rates

real GDP

Answer 1

It can be mentioned that the expansionary monetary policy interest rates decrease increasing the money supply so that the economic activity of the country is increased with which the real GDP of the country increases from the whole and that is the reason why

(d) real GDP is the answer to this question

cause of interest rates are decreased in increasing the inflation rate is not the prime motto of the monetary policy the gap or the GDP gap decreases

(a,b,c) are wrong

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