• Expansionary monetary policy is a tool central banks use to stimulate a declining economy and GDP.
  • The Federal Reserve has three expansionary monetary policy methods: lowering interest rates, decreasing banks’ reserve requirements, and buying government securities.
  • Expansionary monetary policy’s aim is to make it easier for individuals and companies to borrow and spend money — actions that all stimulate the economy.
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Modern, capitalist economies go through regular fluctuations of growth, contraction, and eventual recovery. This repeating nature of the economy is known as a business cycle.

During the contractionary phase, gross domestic product (GDP) is decreasing, which can lead to a prolonged period of economic decline. To combat the slowdown, a nation’s central bank will stimulate growth through an expansionary monetary policy.

What is expansionary monetary policy?

Expansionary monetary policy is a macroeconomic tool that a central bank — like the

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  • A double-dip recession is an economic scenario in which a recession is followed by a brief recovery, then another recession. 
  • Double-dip recessions can be caused by a repeating crisis, or by government policies that deliberately or inadvertently slow economic growth.
  • While unusual, double-dip recessions are doubly severe, creating prolonged periods of low wages, job growth, and GDP.
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Each time a recession looms, financial folk start fretting: Could it become a dreaded double-dip recession? While these types of economic downturns are rare — in fact, the US has  experienced only one before — they’re always a possibility.

Double-dip recessions are especially painful for both consumers and investors. They prolong the road to recovery, causing employment, wages, and investment opportunities to stagnate even longer than they normally would. 

What is a double-dip recession?

A recession is a significant downturn spread across the economy

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SBA status. ” data-reactid=”23″Small business investment companies (SBICs) are Small Business Administration-licensed and regulated companies that provide funding to small businesses in certain sectors. These companies rely on both internal funds and government funds to invest in small businesses, but they have to follow several regulations in order to maintain their SBA status. 

equity investments. The SBIC typically uses its own capital, along with funds borrowed with SBA guarantee, to lend to small businesses, according to the SBA. SBICs are licensed and regulated by the SBA.” data-reactid=”25″A small business investment company (SBIC) is a privately-owned company that funds small businesses through debt and equity investments. The SBIC typically uses its own capital, along with funds borrowed with SBA guarantee, to lend to small businesses, according to the SBA. SBICs are

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Friday, August 28, 2020

More July economic data has hit the tape Friday morning, capping off a busy week in domestic macro information. From here, we enter a typically quiet period with the last remnants of Q2 earnings season trickling in next week ahead of a long Labor Day weekend. Volumes are expected to contract, and markets are not expected to head too far in either direction — barring any major news headlines that might affect more than just the stock market.

Personal Income for July far outperformed expectations, coming in at +0.4% (-0.4% had been expected), marking more or less a return to before the coronavirus pandemic hit the market. It’s also a welcome rebound from the slightly upwardly revised -1.0% posted for June and the -4.4% in May.

July Consumer Spending also came in better than expected at +1.9%, 30 basis points ahead of projections, though below the

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  • A business cycle is the periodic growth and decline of a nation’s economy, measured mainly by its GDP.
  • Governments try to manage business cycles by spending, raising or lowering taxes, and adjusting interest rates.
  • Business cycles can affect individuals in a number of ways, from job-hunting to investing.
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A business cycle, sometimes called a “trade cycle” or “economic cycle,” refers to a series of stages in the economy as it expands and contracts. Constantly repeating, it is primarily measured by the rise and fall of gross domestic product (GDP) in a country.

Business cycles are universal to all nations that have capitalistic economies. All such economies will experience these natural periods of growth and declines, though not all at the same time. However, given the increased globalization, business cycles tend to happen at similar times across countries more often than they

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