Hermesia, a developed? economy, has been experiencing low growth in output with a high rate of unemployment for more than a year. two members of the national trade union in? hermesia, geoffrey miller and arthur? davis, are discussing the relevant expansionary policies that can be taken by the central bank or the government to stimulate economic growth in hermesia. geoffrey suggests that the central bank should substantially lower the reserve requirements of the commercial banks so that money supply and household spending both increase.? arthur, however, disagrees. according to? him, a decrease in the reserve requirements will not have the desired impact on money supply. he believes that an increase in government spending is more likely to boost the economy than an expansionary monetary policy. which of the? following, if? true, would strengthen the case for an expansionary monetary? policy, as opposed to an expansionary fiscal? policy, in? hermesia? a. the level of? non-performing assets of the banking sector increased during the last year. b. currency in circulation accounts for around 23 percent of the total money supply in hermesia. c. interest rates on government bonds in hermesia skyrocketed following a downgrade of sovereign credit ratings. d. the taxable income base in hermesia is very large compared to that in other similar . hermesia attracts very low levels of foreign investment due to relatively low interest rates and the lack of attractive investment opportunities.