Question

which of the following is an example of expansionary monetary policy?
decreasing taxes
increasing the reserve requirement
increasing spending
decreasing the discount rate

Explanation:

Expansionary monetary policy involves actions by a central bank to increase the money supply and stimulate economic activity. Decreasing taxes and increasing spending are fiscal policies (government budget actions), not monetary. Increasing the reserve requirement reduces the money supply (contractionary monetary policy). Decreasing the discount rate lowers the cost for banks to borrow from the central bank, encouraging lending and increasing the money supply, which is expansionary monetary policy.

Answer:

D. decreasing the discount rate