Question

If a government wanted to use monetary policy to increase economic growth, which of the following steps should be taken?
a. Decrease interest rates to increase the amount of money in supply.
b. Increase the amount of foreign currency kept on reserve in U.S. banks.
c. Increase the amount of public revenue for investment by raising taxes.
d. Increase the government spending on public works projects.
e. Print a larger amount of money to increase the money supply.

Answer

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