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2 years ago

Help ASAP please

1 answer:

8 0

The reasoning behind lowering the required reserve ratio to 0% is to increase the money supply. The intended effect is to boost production activities.

<h3>What is an expansionary monetary policy?</h3>

Expansionary monetary policy are polices taken to increase money supply. When money supply increases, aggregate demand increases and this boosts production.

Reducing the required reserve ratio and open market purchase are ways of carrying out expansionary monetary policy

To learn more about monetary policy, please check: brainly.com/question/3817564

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