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Trying to reduce unemployment using expansionary monetary policy during stagflation will? A) Make inflation worse. B) Not affect prices at all C) Make unemployment worse D) Reduce inflation.
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Trying to reduce unemployment using expansionary monetary policy during stagflation will?

A) Make inflation worse.
B) Not affect prices at all
C) Make unemployment worse
D) Reduce inflation.

User Moe Sweet
by
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1 Answer

4 votes

Answer:

A

Step-by-step explanation:

A stagflation is a period of inflation , high unemployment and stagnation of the economy.

An expansionary monetary policy is a policy undertaken by the Central Bank of a country to increase the money supply in the economy.

Increasing money supply in a period of stagflation would make inflation worse.

User Garland
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