What is one major advantage of expansionary monetary policy?

One major advantage of expansionary monetary policy is its ability to stimulate economic growth. This policy is implemented by a country's central bank, typically through mechanisms such as lowering interest rates or purchasing government securities. By reducing interest rates, borrowing becomes cheaper for consumers and businesses, encouraging them to take loans for investments and spending. This increased activity can lead to heightened demand for goods and services, ultimately driving economic growth.

Moreover, as businesses invest in new projects and consumers feel more confident in their financial situations, employment levels can rise, further contributing to economic expansion. Additionally, when more money circulates in the economy due to lower borrowing costs, it can help combat recessions or periods of slow growth by revitalizing spending in various sectors.

The other options do not capture the central advantage of expansionary monetary policy. For instance, while it may influence inflation, this aspect is not an immediate advantage compared to its potential for growth. Lowering taxes and decreasing government spending are typically associated with fiscal policy rather than monetary policy, thus not aligning directly with the principles of expansionary monetary measures.