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Choose the best word from each drop-down menu.Increasing the amount of credit that is available within an economy is done through monetary policy. _____The potential to cause inflation is accompanied by monetary policy.______A(n) monetary policy can cause interest rates to increase._______expanisionarycontractionaryexpansionary

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Savagealphawolf47

Answer: Choose the best word from each drop-down menu.

Increasing the amount of credit that is available within an economy is done through expansionary monetary policy.

The potential to cause inflation is accompanied by expansionary  monetary policy.

A(n) contractionary monetary policy can cause interest rates to increase.

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Lanuel

The best word to complete each of the sentence are:

  1. Increasing the amount of credit that is available within an economy is done through an expansionary monetary policy.
  2. The potential to cause inflation is accompanied by an expansionary  monetary policy.
  3. A contractionary monetary policy can cause interest rates to increase.

What is a monetary policy?

A monetary policy is also known as a fiscal policy and it can be defined as the use of government expenditures (spending) and revenues (taxation), in order to influence macroeconomic conditions such as:

  • Aggregate Demand (AD)
  • Inflation
  • Employment within a country.

The types of monetary policy.

In Economics, there are two main types of monetary policy and these include the following:

  • Expansionary monetary policy.
  • Contractionary monetary policy.

In conclusion, an expansionary monetary policy can be used by the government to increase the amount of credit that is available within its country's economy.

Read more on monetary policy here: https://brainly.com/question/13926715

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