Question

Which of the following statements is/are correct?

1.    The Expansionary Monetary Policy increases additional money into the economy and increases inflation levels.

2.    Expansionary Monetary Policy has the potential to cause the devaluation of a currency.

Select the correct answer using the code given below:

A 1 only Correct Answer Incorrect Answer
B 2 only Correct Answer Incorrect Answer
C Both 1 and 2 Correct Answer Incorrect Answer
D Neither 1 nor 2 Correct Answer Incorrect Answer

Solution

Both are correct here.

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