Expansionary monetary policy refers to the ________ to increase real gdp.
a. government's increasing spending and lowering taxes
b. federal reserve's decreasing the money supply and increasing interest rates
c. federal reserve's increasing the money supply and decreasing interest rates
d. government's decreasing spending and raising taxes
Expansionary monetary policy refers to the Federal Reserve's increasing the money supply and decreasing interest rates to increase real gdp. So the answer is C.
