briehimrich3907 briehimrich3907
  • 15-04-2019
  • Business
contestada

When the central bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is:?

Respuesta :

ahmedishaal ahmedishaal
  • 26-04-2019

Answer:

It is "following an expansionary monetary policy".

Explanation:

When the central bank uses expansionary monetary policy, money supply increases and the  interest rates decreases, this will lead to no change in aggregate demand. It also affects the value of the currency and that is lowering its value but there is improvement in growth of domestic economy.

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