Respuesta :
if their s more money in the economy,more money is available
consumers and firms are more willing to borrow money since the don't have to pay such a high interest rate
hope this helps
consumers and firms are more willing to borrow money since the don't have to pay such a high interest rate
hope this helps
In summary:
Expansionary monetary is a supply of money that allows authorities to expand the money supply. In short terms, it's money that's ready to be used, not debt money. Liquidity increases purchase potential on a macroeconomic scale.
On a macro level, the profits are measured but assets disbursed and credits are never, so expansion shows growth. If there is more money in the economy, money is more readily available. Consumers and firms are more willing to borrow money since they do not have to pay as high an interest rate on it as they did before, and thus economic activity increases.
Expansionary monetary is a supply of money that allows authorities to expand the money supply. In short terms, it's money that's ready to be used, not debt money. Liquidity increases purchase potential on a macroeconomic scale.
On a macro level, the profits are measured but assets disbursed and credits are never, so expansion shows growth. If there is more money in the economy, money is more readily available. Consumers and firms are more willing to borrow money since they do not have to pay as high an interest rate on it as they did before, and thus economic activity increases.