A policy that lowers interest rates and stimulates borrowing is called:

1. Monetary policy can push in either of two directions. 2. Lower rates make borrowing cheaper and encourage spending. 3. A policy that lowers interest rates and stimulates borrowing is expansionary. 4. It also goes by the name loose monetary policy. _Source: OpenStax Principles of Macroeconomics 3e (CC BY 4.0), Ch 15 'Monetary Policy and Bank Regulation', sections 15.1-15.5_