Why is lowering the interest rate on reserves considered an expansionary
monetary policy?
A....
Social Studies, 22.11.2020 22:40 Alinakohshsb
Why is lowering the interest rate on reserves considered an expansionary
monetary policy?
A. It causes banks to increase their prime interest rate in response.
B. It prevents investors from withdrawing too much money from
banks.
C. It pressures investors to spend more money on treasury
securities.
D. It encourages banks to lend money instead of keeping it in
reserve.
Answers: 2
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