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Discuss the primary goals of expansionary monetary policies and contractionary monetary policies. Discuss each of these...

Discuss the primary goals of expansionary monetary policies and contractionary monetary policies. Discuss each of these policy's effects on unemployment rates, inflation rates, interest rates, private investment, and GDP.

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Answer #1

The primary goals of expansionary monetary is to increase the demand in the economy and an increased the demand will increase the employment decreasing the unemployment rate and increase the inflation in the market, it will decrease the interest rate and increase the investment and increase the GDP.

The primary goals of contractionary monetary policies is to decrease the inflation and stabilize the price. It will increase the unemployment in the market and decrease the inflation and raise the interest rates and decrease the private investment and decrease the GDP.

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