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expansionary monetary policy increases money supply by lowering interest rates
Expansionary Monetary Policy is adopted by the monetary authorities to increase the money supply of an economy. If money supply is increasing, and central bank adopts an expansionary monetary policy, it would result in inflationary pressures.
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An expansionary monetary policy.
Decreasing the discount rate.
expansionary monetary policy increases money supply by lowering interest rates
Expansionary Monetary Policy is adopted by the monetary authorities to increase the money supply of an economy. If money supply is increasing, and central bank adopts an expansionary monetary policy, it would result in inflationary pressures.
Monetary policy is referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy, and a contractionary policy decreases the total money supply. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates, while contractionary policy involves raising interest rates in order to combat inflation. Monetary policy should be contrasted with fiscal policy, which refers to government borrowing, spending and taxation. More useful Information here: www.vinayakjobs.com .
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Decreasing the discount rate.
An expansionary monetary policy.
The economy has been growing rapidly.
it is part of expansionary monetary policy
it is part of expansionary monetary policy
This is a situation where monetary authorities are accomomdating the effects of expansionary fiscal policy with the aim of stopping the crowding out of investors.
it is part of expansionary monetary policy
The fed uses an expansionary monetary policy when dealing with a contraction. On the other hand, when dealing with a expansion that is resulting in higher interest rates, the fed uses a tight money policy.