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Expansionary and Contractionary Monetary Policy
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Expansionary and Contractionary Monetary Policy
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19. Monetary Policy / Expansionary and Contractionary Monetary Policy / Problem 6
Problem 6
What is the primary goal of expansionary monetary policy?
A
To increase GDP and reduce unemployment during a recession.
B
To maintain a constant GDP regardless of economic conditions.
C
To decrease GDP and control inflation during an overheated economy.
D
To increase interest rates to encourage saving.
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