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If the Federal Reserve is said to have an expansionary monetary policy, which of the following is true? 1. The supply of money will increase 2.More money will circulate in the economy 3.Banks will tighten lending 4.Interest rates will decline

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If the Federal Reserve is said to have an expansionary monetary policy, which of the following is true?<br><table border='1' cellpadding='0' cellspacing='0'><thead> <tr> <td> <b>1.</b> </td> <td> <b>The supply of money will increase</b> </td></tr> </thead><tbody> <tr><td><b>2.</b></td><td>More money will circulate in the economy</td> </tr> <tr><td><b>3.</b></td><td>Banks will tighten lending</td> </tr> <tr><td><b>4.</b></td><td>Interest rates will decline</td> </tr></tbody></table><br>






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