lower the interest rate that banks are charged for borrowing money and can increase spending
decrease the reserve requirement on banks and cut personal taxes
What are two ways in which the economy can be stimulated through monetary policy?
decrease the reserve requirement on banks and increase spending.
lower the interest rate that banks are charged for borrowing money and can decrease the reserve requirement on banks.
lower the interest rate that banks are charged for borrowing money and can cut personal taxes.
cut personal taxes and increase spending
3 answers
huh?
Apologies for the confusion. The correct answer is:
1. Lower the interest rate that banks are charged for borrowing money: By reducing the interest rate, borrowing becomes cheaper for banks, which encourages them to lend more money to businesses and individuals. This increased lending can stimulate economic activity and investment.
2. Increase spending: By increasing government spending on infrastructure projects, public services, or social programs, more money is injected into the economy. This can lead to increased consumption, job creation, and overall economic growth.
1. Lower the interest rate that banks are charged for borrowing money: By reducing the interest rate, borrowing becomes cheaper for banks, which encourages them to lend more money to businesses and individuals. This increased lending can stimulate economic activity and investment.
2. Increase spending: By increasing government spending on infrastructure projects, public services, or social programs, more money is injected into the economy. This can lead to increased consumption, job creation, and overall economic growth.