Final answer:
Governments aim to stimulate economic activity and employment by using monetary policy to lower interest rates, making borrowing more affordable for investment and consumption.
Step-by-step explanation:
When governments use monetary policy to encourage banks to charge less for lending money, they usually aim to stimulate economic activity by making borrowing more affordable. Lowering interest rates through various monetary policy tools like open market operations, discount rates, and reserve requirements, increases the availability of loanable funds. This action by the central bank is designed to stimulate additional borrowing for investment and consumption, shifting aggregate demand to the right, which can lead to higher real GDP and potentially contribute to maximizing sustainable employment, one of the main goals of macroeconomic policies alongside low inflation.
The correct answer to the student's question, therefore, is B. Maximizing sustainable employment.