Respuesta :
Expansionary policy, also referred to as loose monetary policy, expands the supply of cash and debt to boost the economy. NO It really doesn't
What impact does money creation have on the supply of money?
When a banking system employs expansionary monetary policy, it helps to boost the economy. This boosts the funds, brings inflation down, and raises requirement. It promotes economic expansion. It reduces the currency's worth, which decreases the money demand.
What changes when the monetary system is expansionary?
The cost of borrowing will move from the initial supply curve (S0) to the new quantity supplied (S1), and then to a dynamic balance of E1, shifting the lending rate from 8% to 6%.
To know more about economy click here
brainly.com/question/2421251
#SPJ4
