Which monetary policy action is most expansionary?
A. Increasing reserve requirements for banks
B. Selling government bonds
C. Lowering the central bank’s interest rate
D. Raising taxes on imports

Question

Which monetary policy action is most expansionary?
 A. Increasing reserve requirements for banks
 B. Selling government bonds
 C. Lowering the central bank’s interest rate
 D. Raising taxes on imports

Sefton · Answer

The correct answer is C. When the Bangko Sentral ng Pilipinas (BSP) lowers interest rates, it becomes easier and cheaper to borrow money. This encourages businesses to invest and people to spend more, boosting the economy. It’s called expansionary policy because it supports growth. This was done during the COVID-19 pandemic to help businesses survive and stimulate economic activity.

Answered by Sefton | 2025-05-26

Which monetary policy action is most expansionary? A. Increasing reserve requirements for banks B. Selling government bonds C. Lowering the central bank’s interest rate D. Raising taxes on imports

Answer (1)

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Which monetary policy action is most expansionary?
A. Increasing reserve requirements for banks
B. Selling government bonds
C. Lowering the central bank’s interest rate
D. Raising taxes on imports

[Sagot para sa’yo] Sources of Information to Find Work

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