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Monetary expansion decreases and there is increase in equilibrium interest rate then supply curve of funds must shift
Answer & Solution
Correct Answer:
Option
C
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.
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