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Why is lowering the interest rate on reserves considered an expansionary monetary policy?

Why is lowering the interest rate on reserves considered an expansionary monetary policy?
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Why is lowering the interest rate on reserves considered an expansionary monetary policy?

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User Hisam
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2 Answers

1 vote

Answer:

It GIVES BANKS more money to lend to customers

Step-by-step explanation:

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User Alfishe
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5 votes

Answer:

It gives banks more money to lend to customers!

Step-by-step explanation:

answered
User James Milani
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7.6k points
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