Expansionary monetary policy is designed to:
A. reduce the overall money supply.
B. give a central bank more power.
C. increase long-term interest rates.
D. promote more economic activity.

Monetary policy regulates the amount of money available in a society as well as the channels by which additional wealth is provided. The purpose of a central bank in controlling the money supply is to influence macroeconomic parameters such as inflation, rate of consumption, economic growth, and overall liquidity.

Expansionary monetary policy functions by rapidly expanding the money supply or decreasing short-term interest rates. Central banks apply it through open market operations, margin requirements, and interest rate regulation.

Expansionary monetary policy is intended to promote more economic activity.

So, option D. is correct.

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Expansionary monetary policy is designed to: A. reduce the overall money supply. B. give a central bank more power. C. increase long-term interest rates. D. promote more economic activity.

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Monetary policy

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Expansionary monetary policy is designed to:
A. reduce the overall money supply.
B. give a central bank more power.
C. increase long-term interest rates.
D. promote more economic activity.