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Expansionary Monetary Policy | Macroeconomics

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This content is about expansionary monetary policy, a tool used by the Federal Reserve to stimulate economic growth and bring the economy back to full employment equilibrium. Expansionary monetary policy can take several forms, such as purchasing Treasury bills and notes, decreasing the federal funds rate, and decreasing reserve requirements. The Fed has also recently developed new methods of pursuing expansionary monetary policy, such as quantitative easing, which involves creating money electronically to purchase long-term securities."

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