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27 August, 06:36

If monetary policy is being used to increase the money supply, what do we call this?

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  1. 27 August, 07:38
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    Expansionary monetary policies

    Explanation:

    Monetary policy refers to the regulation of money supply to influence macroeconomic indicators such as inflation, unemployment, and output. Expansionary monetary policies are the measures designed to increase the money supply in the economy.

    The central Bank of through the Fed implements monetary policies to attain maximum and sustainable economic growth. Policies that increase the money supply include a reduction in the interest rates. Open market operations where the Fed purchases bonds and securities from the market increases the money supply in the economy.
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