Economics · Monetary Policy
What is the primary effect of an expansionary Monetary Policy adopted by a Central Bank?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It increases the money supply in the economy.✓
- 2It has no effect on the rate of interest charged by commercial banks.
- 3It decreases the money supply in the economy.
- 4It increases the cost of borrowing.
Correct answer
It increases the money supply in the economy.
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