chloeroebuck2021
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If the economy is experiencing high rates of inflation due to a new housing bubble, what effects would an expansionary monetary policy have on the economy?

It would reduce inflation and increase unemployment.

It would push inflation still higher and increase unemployment.

It would push inflation still higher and reduce unemployment.

It would reduce both inflation and unemployment.

Respuesta :

lawrencemma2165
It would push inflation still higher and reduce unemployment.

An expansionary monetary policy will shift the aggregate demand curve to the right, putting upward pressure on the price level and lowering unemployment. If inflation is already high, it will push inflation still higher.

Answer:

It would push inflation still higher and reduce unemployment.

Explanation:

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