if the government initiates an expansionary monetary policy at the same time that its budget deficit decreases, then the interest rate will . group of answer choices

If the government initiates an expansionary monetary policy at the same time that its budget deficit decreases, then the interest rate will decrease.

Option C is correct.

Expansionary Monetary Policy:

By either lowering short-term interest rates or expanding the money supply more quickly than usual, expansionary monetary policy works. Through open market operations, reserve requirements, and interest rate setting, it is enacted by central banks.

What is the purpose of monetary policy that is expansionary?

In times of economic difficulty, expansionary monetary policy aims to grow the economy. The overarching objective is to boost business and consumer spending by increasing the money supply through a variety of liquidity-enhancing measures.

How does monetary policy that is expansionary lower unemployment?

Borrowing costs less when interest rates are lower. People invest more and spend more when borrowing money is easier. This reduces cyclical unemployment while increasing aggregate demand and GDP.

Question is incomplete . Missing options are below:

if the government initiates an expansionary monetary policy at the same time that its budget deficit decreases, then the interest rate will . group of answer choices

A. increase

B. either increase or decrease

C. decrease

D. remain unchanged

Learn more about expansionary monetary policy:

brainly.com/question/18939014

#SPJ4