What are two types of monetary policy?

Answer

There are two basic types of monetary policy. Expansionary and Contractionary. Expansionary monetary policy increases the money supply, while contractionary monetary policy decreases the money supply. Expansionary monetary policy can include purchasing government bonds, and decreasing the reserve requirement and the federal funds interest rate. An example of contractionary policy is the selling of government bonds.
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Q&A Related to "What are two types of monetary policy?"
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