In 2008, the Bank of England increased the country's money supply and lowered its interest rate. This policy was designed to

Question

Quizplus · Accepted Answer

Increasing the money supply and lowering interest rates are monetary policy tools used to stimulate economic activity. By making more money available and borrowing cheaper, these actions encourage spending on goods and services (A) and shift the aggregate demand curve rightward (B), indicating an increase in the overall demand within the economy.

In 2008, the Bank of England Increased the Country's Money