O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2019 · Q91 Mark
In recent years some central banks have reduced interest rates below 1% per year. What is the purpose of this monetary policy?
Ato discourage lending by the commercial banks
Bto encourage investment to stimulate the economy
Cto increase individual savings
Dto reduce inflation
✓ Correct answer
B: to encourage investment to stimulate the economy
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