Expansionary refers to a type of monetary policy aimed at stimulating economic growth by increasing spending and investment. It typically involves lowering interest rates and increasing the money supply.
Related terms
Fiscal Policy: Government decisions on taxation and spending that also aim to influence economic conditions.
Aggregate Demand: The total demand for goods and services in an economy at any given time.
Multiplier Effect: The idea that an initial increase in spending can lead to larger increases in aggregate demand due to subsequent rounds of increased spending.