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If the central bank wants to help the economy to grow, it can decrease _____?

a. spending
b. interest rates
c. tax levels

2 Answers

4 votes
Answer: B. interest rates
User Melih Sevim
by
8.5k points
2 votes

Answer: b. interest rates

Explanation:

Interest rates are known as the sum of money which a borrower pays to a lender for borrowing money from him.

The Central Bank helps the economy to grow by lending money to commercial banks at a low interest rate. Furthermore, people also borrow more money from commercial banks because they also give out loan to them at a low interest rate. Thus, this leads to increase in the amount of money in the economy which makes it to grow.

User Santa
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