Question

Easy money policy is _____.

monetary policy that increases the money supply

the belief that the money supply is the most important factor in macroeconomic performance

monetary policy that reduces the money supply

the time it takes for monetary policy to have an effect

Answer 1

Easy money policy is monetary policy that increases money supply.

Step-by-step explanation:

This is usually done through reducing the interest rates by the central bank.

Easy money policy is implemented by the central bank of a country when it wants to increase money flow into the banks.

This policy when implemented leads to an increase in economic growth.

After a short time of implementation, there is experienced an increase in the value of securities.