Final answer:
An expansionary monetary policy is a policy that lowers interest rates and stimulates borrowing in order to boost aggregate demand and counter recession.
Step-by-step explanation:
An expansionary monetary policy is a monetary policy that lowers interest rates and stimulates borrowing, while a contractionary monetary policy raises interest rates and reduces borrowing in the economy. The goal of an expansionary monetary policy is to boost aggregate demand and counter recession. This is achieved by increasing the quantity of money and credit above what it otherwise would have been, which in turn reduces interest rates and encourages borrowing. During the 2008-2009 recession, central banks used quantitative easing to expand the supply of credit.