ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Expansionary Monetary Policy Graph Lower interest rates decrease the cost of borrowing money, which encourages consumers to increase spending on goods and services and businesses to invest in new equipment.

Detailed explanation-2: -An expansionary monetary policy is a type of macroeconomic monetary policy that aims to increase the rate of monetary expansion to stimulate the growth of a domestic economy.

Detailed explanation-3: -Expansionary monetary policy is a tool central banks use to stimulate a declining economy and GDP.

Detailed explanation-4: -Expansionary Monetary Policy Also known as loose monetary policy, expansionary policy increases the supply of money and credit to generate economic growth. A central bank may deploy an expansionist monetary policy to reduce unemployment and boost growth during hard economic times.