The purpose of expansionary monetary policy is to grow the economy, particularly in times of economic trouble.
Monetary policy consists of management of money supply and interest rates, aimed at achieving macroeconomic objectives like inflation and liquidity.
These are achieved by actions such as modifying the interest rate, buying or selling government bonds and changing the amount of money banks are required to maintain as reserves.
Hence, the purpose of expansionary monetary policy is to grow the economy, particularly in times of economic trouble.
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