expansionary

Examples of expansionary in the following topics:

• Monetary Policy

  • It is referred to as either being expansionary or contractionary.
  • An expansionary policy increases the total supply of money in the economy more rapidly than usual.
  • Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses to expand.
  • An expansionary policy increases the size of the money supply more rapidly or decreases the interest rate.

• Fiscal Policy

  • Expansionary fiscal policy involves government spending exceeding tax revenue, and is usually undertaken during recessions.
  • In the classical view, the expansionary fiscal policy also decreases net exports, which has a mitigating effect on national output and income.
  • This is because, all other things being equal, the bonds issued from a country executing expansionary fiscal policy now offer a higher rate of return.

• Monetary Policy

  • It is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it.
  • Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding.

• Fiscal Policy and Policy Making

  • Expansionary fiscal policy, which involves government spending exceeding tax revenue, and is usually undertaken during recessions.