Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Weeds
B
Soil nutrients
C
Flower growth
D
Garden pests
Understanding the Answer
Let's break down why this is correct
Answer
Expansionary monetary policy is to aggregate demand what a gardener is to a garden: it nurtures growth. By lowering interest rates and increasing money supply, the policy encourages businesses and households to spend more, just as a gardener waters and feeds plants. Both actions aim to stimulate flourishing—one stimulates the economy, the other stimulates plants. For example, when a bank cuts rates, consumers buy more cars, boosting demand like a gardener pruning a bush to make it flourish. Thus, the policy acts as a caretaker of the economy, just as a gardener cares for a garden.
Detailed Explanation
Expansionary policy lowers interest rates, like a gardener adding nutrients, so more money flows in, businesses spend more, and the economy grows. Other options are incorrect because Weeds stop plants from growing; Soil nutrients help plants, but the policy itself is the action that boosts demand, not just a nutrient.
Key Concepts
Expansionary Monetary Policy
Aggregate Demand
Economic Output
Topic
Expansionary Monetary Policy Effects
Difficulty
hard level question
Cognitive Level
understand
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