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What's the Contractionary and expansionary monetary policies?

帮考网校2020-10-22 16:56:24
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Contractionary monetary policy is when a central bank, such as the Federal Reserve in the United States, takes actions to decrease the money supply and increase interest rates. This is done to slow down economic growth and combat inflation.

Expansionary monetary policy is when a central bank takes actions to increase the money supply and decrease interest rates. This is done to stimulate economic growth and combat recession.
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