When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is:
A. following a contractionary monetary policy.
B. following quantitative easing policy.
C. following a tight monetary policy.
D. following an expansionary monetary policy.
Answer:D
When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is:
A. following a contractionary monetary policy. B. following quantitative easing policy. C. following a tight monetary policy. D. following an expansionary monetary policy.
Explanation: Type: Multiple Choice