Expansionary monetary policy occurs when in an effort to stimulate the economy. A. A central bank acts to increase the money supply.
B. A central bank acts to increase government spending.
C. Congress and the president decrease taxes.
D. Congress and the president increase taxes.
E. A central bank acts to decrease the money supply.

The right approach is Option A (A centralsupply).

Explanation:

The other three solutions aren't connected to the situation in question. Therefore the right choice is the above.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.