Definition
Expansionary monetary policy increases the money supply to stimulate economic activity.
Why It Matters
It is used to fight recessions and unemployment.
Example
Lowering interest rates to boost spending.
Malone Global University
Malone Global University
Economics Glossary – Malone Global University
Expansionary monetary policy increases the money supply to stimulate economic activity.
It is used to fight recessions and unemployment.
Lowering interest rates to boost spending.