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Monetary policy that lowers interest rates and stimulates borrowing is:

ATightening
BNeutralising
CExpansionary
DContractionary
Answer & Solution
Correct answer: C. Expansionary
1. It is also called loose policy. 2. Lower rates mean expansionary policy. 3. Tight policy raises rates. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 14, Monetary Policy and Bank Regulation (CC BY 4.0)._
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