It is important to assess the causes of the current economic crisis in Macropoland. Management efforts and techniques for production modification are required in order to adopt any economic recovery model. Expansionary will be beneficial for the company’s productivity and performance. An expansionary policy, a macroeconomic model designed to increase economic growth, is an example of a macro-economic approach (Sarmento and al. 2019, 2019). This policy could be either fiscal or monetary depending on the economic situation. The policy has been a critical part of the overall policy prescription of Keynesian economics, which is used during the economic slowdowns and recessions to moderate and improve the economic cycles (Cavallino & Sandri,2018). Through increased lending to businesses and customers, the Expansionary Policy aims at improving customer spending and business investment.
There are three types of expansionary monetary policy tools: lowering interest rates; open market operations; and reserve discount rate. Macropoland will benefit from a discounted rate to customers. The open market operations will also be used to help determine which industrial activities are more valuable to Macropoland. Increasing the money supply will increase economic growth. Engaging with the monetary controls institutions like the central bank and increasing the cash supply will reduce short-term interest rates. In order to increase output and generate higher incomes, more employment, and lower taxes, fiscal policy instruments such as expanding company spending will be used. Higher output means more income which will in turn lead to higher investments rates. This will ultimately improve the company’s economic standing.
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