Banking and Expansion of Money Supply
AP Macroeconomics · Flashcards
AP MACROECONOMICS · FLASHCARDS
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QUESTION
What is a 'checkable deposit'?
QUESTION
Which tool can the central bank use to combat inflation?
QUESTION
Explain an expansionary monetary policy.
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ANSWER
Policy aimed at increasing the money supply to stimulate the economy. Lower rates and more money supply boost economic growth.
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