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Which action is an example of an expansionary monetary policy? A. Selling Treasury securities • B. Lowering the discount rate • C. Raising the interest on reserve rate • D. Raising the reserve requirement
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20 votes
20 votes
Which action is an example of an expansionary monetary policy?

A. Selling Treasury securities
•
B. Lowering the discount rate
• C. Raising the interest on reserve rate
•
D. Raising the reserve requirement

User Nikola Irinchev
by
2.9k points

1 Answer

13 votes
13 votes

Answer: B

Step-by-step explanation:

The three key actions by the Fed to expand the economy include a decreased discount rate, buying government securities, and a lowered reserve ratio.

User Yellen
by
2.5k points
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