Question

question 5 of 10
when governments use monetary policies to encourage banks to charge less when lending money, they are pursuing the policy goal of:

a. promoting stable prices.

b. maximizing sustainable employment.

c. reducing the overall money supply.

d. keeping interest rates moderate.

Explanation:

When governments use monetary policy to push banks to lend at lower rates, this makes borrowing cheaper for businesses and households. Cheaper borrowing encourages businesses to invest and hire more workers, which directly supports the goal of maximizing sustainable employment. Lowering lending rates does not target stable prices (that is typically for curbing inflation), it increases (not reduces) money supply, and keeping rates moderate is a tool, not the end goal here.

Answer:

B. maximizing sustainable employment.