What is the primary goal of expansionary monetary policy?

The primary goal of expansionary monetary policy is to stimulate economic growth, especially during times of recession or slow economic activity. When a central bank, like the Federal Reserve, implements this policy, it usually lowers interest rates and increases the money supply. Lower interest rates make borrowing cheaper for businesses and consumers, encouraging them to spend and invest more. For example, if a bank offers lower rates on loans, a small business might decide to borrow money to buy new equipment, which helps boost the economy. Overall, the aim is to increase spending and investment to create jobs and improve economic conditions.