Which of the following is an example of expansionary monetary policy?

(a) the president signing an executive order to raise the minimum wage of government employees.
(b) the fed increasing the money supply to push interest rates lower.
(c) the fed raising the discount rate for member banks.
(d) congress passing a new government stimulus package.

The correct answer is ( b)

Explanation:

Expansionary monetary policy is the point at which fed utilises its resources to decrease or increase the money supply. Fed usually increases the money supply to lower the interest rate. Expansionary fiscal policy is applied to improve the economic situation of a country as it increases GDP and reduces the interest rate. Monetary policy is an important tool to monitor and control the interest rate of a country.

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