Expansionary fiscal policy is always more effective than expansionary monetary policy in stimulating economic growth during a recession.

Expansionary fiscal policy involves the government increasing spending or cutting taxes to boost economic activity, while expansionary monetary policy focuses on lowering interest rates and increasing money supply through the central bank. While fiscal policy can directly inject money into the economy, such as funding public projects that create jobs, monetary policy may take longer to affect spending since it relies on banks lending money. For example, if the government builds a new highway, it creates jobs for workers and stimulates local businesses, leading to faster economic growth. However, if interest rates are lowered but banks are hesitant to lend, the impact may not be felt immediately. Therefore, while both policies can help during a recession, fiscal policy can often be more effective in providing immediate relief and stimulating growth.