Page 205 - A Canuck's Guide to Financial Literacy 2020
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               Expansionary Monetary Policy


               A central bank would use an expansionary monetary policy in order to stimulate the growth
               of the economy. This would the injection of a money supply into the economy. This injection
               would boost consumer spending and increase capital investment.


               Expansionary monetary policy tools involve decreasing interest rates, reducing capital
               reserve requirements and buying back government securities.
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