Yes he did encourage religious tolerance.
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The answer will be A. Both tried to spread Catholicism in the new world. Both were devoted catholics and the idea also was to "impose" their religion as a way to expand their domains
I would suggest a decrease in the interest rate by the central bank to help further the economic expansion. the decreased interest rate would mean there are plenty of loans available for businessmen to start a new business and that inturn will generate more resources as before there by increasing the real gdp.