Which of the following is an example of an expansionary monetary policy?

A) A reduction in government purchases of goods and services
B) An increase in the discount rate
C) An open market sale of U.S.government securities
D) A reduction in the required reserve ratio
E) A tax cut

A reduction in the required reserve ratio would increase the money supply, making it easier for people to borrow and spend, which is an example of an expansionary monetary policy.

Note: Options A, B, and C are examples of contractionary monetary policies as they would decrease the money supply by reducing government spending, increasing the discount rate, and selling government securities, respectively. Option E is a fiscal policy, not a monetary policy.