Monetary expansion decreases and there is increase in equilibrium interest rate then supply curve of funds must shift

A. down and to left

B. down and to right

C. up and to left

D. up and to right

Answer: Option C

Solution(By Examveda Team)

Monetary expansion decreases and there is increase in equilibrium interest rate then supply curve of funds must shift up and to left. Expansionary monetary policy is when a central bank uses its tools to stimulate the economy. That increases the money supply, lowers interest rates, and increases aggregate demand. It boosts growth as measured by gross domestic product.