3
QuizMultiple Choice

Business and Government — Test

Question 3 • Economics

Which of these are goals of an expansionary policy? Choose three correct answers.

Answer
A
decreased available credit
B
increased money supply
C
increased interest rates
D
decreased interest rates
E
increased available credit
F
increased inflation

Explanation

Expansionary monetary policy encourages borrowing and spending by lowering interest rates and increasing the money supply. These changes make more credit available to households and businesses, so the three goals are decreased interest rates, increased money supply, and increased available credit. Increased inflation can result from expansionary policy, but it is not typically a goal.

AI-written and checked against the verified answer.

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