Expansionary Monetary Policy is a strategy used by central banks, like the Federal Reserve, to stimulate economic growth. This policy involves lowering interest rates and increasing the money supply, making borrowing cheaper for individuals and businesses. The goal is to encourage spending and investment, which can help boost economic activity during periods of slow growth or recession. When central banks implement expansionary monetary policy, they may also purchase government securities in the open market. This action injects more money into the economy, further encouraging lending and spending. Ultimately, the aim is to increase employment and stabilize prices, fostering a healthier economic environment.