Expansionary policies, such as lowering interest rates, always lead to increased investment and economic growth, regardless of the current economic conditions.

Expansionary policies, like lowering interest rates, are designed to encourage people and businesses to borrow and spend more money. When interest rates are lower, loans become cheaper, making it easier for companies to invest in new projects or expand their operations. However, this does not always guarantee increased investment or growth, especially if the economy is facing challenges like high unemployment or low consumer confidence. For example, during a recession, even with low interest rates, businesses might hesitate to invest because they fear that demand for their products will remain weak. Therefore, while expansionary policies can stimulate investment, their effectiveness often depends on the broader economic context.