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

A. up and to left

B. up and to right

C. down and to left

D. down and to right

Answer: Option D

Solution(By Examveda Team)

Monetary expansion increases and there is decrease in equilibrium interest rate then supply curve of funds must shift down and to right. 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.