If the central bank pursues an expansionary monetary policy, the growth rate of

Question

If the central bank pursues an expansionary monetary policy, the growth rate of the money supply is likely to (decrease/increase) .

Which of the following changes would likely lead to a decrease in the M1 money supply in the United States? Check all that apply. The U.S. dollar becomes more popular among developing countries, where it is increasingly used in daily transactions. Many people decide to shift their money from savings accounts to interest-earning checking accounts. The use of credit cards for payments made both in person and in online purchases becomes widespread A financial crisis reduces many people's faith in money market mutual funds, causing them to switch to demand deposits

Explanation / Answer

Answer)

Q.1) the growth rate of the money supply is likely to increase.

Q.2) The use of credit cards for payments made both in person and in online purchases becomes more widespread.

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