本题目来源于试卷: IB Economics Unit 3.4: Macroeconomics - Monetary Policy & Fiscal Policy，类别为 IB经济学
[单选题]
Select from the choices beli2o- in2;z iudow which would be the most appropriate reason foryki5 lhhiu8sd) jn (.) the c ujl(i)d.hi 8kn)sy5hentral bank to increase the money supply:
A. the economy has encountered deflationary pressures for the last three quarters
B. the economy has been able to sustain an inflation rate of approximately 2 %
C. the economy has experienced a rapid increase in private domestic investment spending
D. the economy has achieved a rapid increase in net exports
参考答案: A
本题详细解析:
Increasing the money supply is a type of expansiongn-(fot5oc+4 lkn j 3,l 1ei0rypkz*rary monetary policy that aims to stimulate overall spending and may increase national output and the average pl*n4o5+tr1o y0 nl3ge( ifc-rk,pkzj rice level. It is usually implemented by central banks during recessions, which are characterized by a decrease in price level, a high unemployment rate, or a negative economic growth rate.
Choice A depicts an ideal situation for the implementation of expansionary monetary policy as it could deal with weak demand that caused the recession without significant inflation coming from three successive quarters of deflation.
Choice B is incorrect as the maintenance of a 2%inflation rate is consistent with achieving inflation targeting by central banks. Expansionary monetary policy would introduce greater volatility in the average price level, causing higher inflation.
Choices C and D both depict a scenario where rapid economic growth is achieved through an increase in aggregate demand. However, implementing expansionary monetary in this case would not result in stable prices and low inflation.
| 
