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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