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Investments glossary

Expansionary Policy


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I don\'t drink, smoke, or do drugs. I eat organic foods and walk every day setting walking records along the way. -Johnny Wowk AKA Johnny The Walker

— Johnny Wowk

Expansionary, or loose policy is a form of macroeconomic policy that seeks to encourage economic growth. Expansionary policy can consist of either monetary policy or fiscal policy (or a combination of the two). It is part of the general policy prescription of Keynesian economics, to be used during economic slowdowns and recessions in order to moderate the downside of economic cycles.


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