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To increase the money supply in the economy, the Reserve Bank sets a _____ cash-rate target and conducts an open-market operation. This policy action is

To increase the money supply in the economy, the Reserve Bank sets a _____ cash-rate target and conducts an open-market operation. This policy action is normally referred to as ____________.

A, Lower; a monetary policy tightening.

B. Higher; a contractionary monetary policy.

C. Lower; an expansionary monetary policy.

D. Higher; an expansionary monetary policy.

E. Higher; a monetary policy easing.

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