If a government wanted to use monetary policy to increase economic growth, which of the following steps should be taken?

Question

Quizplus · Accepted Answer

Decreasing interest rates would make borrowing cheaper, encouraging businesses and consumers to take out loans and spend money. This increased spending would stimulate the economy and increase economic growth. The other options would not necessarily have the same effect on economic growth or could potentially have negative effects. For example, increasing taxes could lead to decreased consumer spending, while printing too much money could lead to inflation.

If a Government Wanted to Use Monetary Policy to Increase