A central bank would like to stimulate more economic activity. In order to encourage banks to lend more money, it reduces the cost of taking out short term loans from the government. Which monetary policy used by a central bank does this best describe?

The discount rate

Explanation:

The central bank adopts a variety of operations under its monetary policy to regulate the adequate flow of cash in the economy. It primarily includes four operations; interest on reserves, discount rates, open-market operations, and reserve requirements. The central bank each of these elements of monetary policy to increase or decrease the money supply to control the situation of inflation or deflation in the economy.

As per the question, the reduction of cost of taking out for short-term loans from the government would be characterized as the 'reduction in discount rate' element of the monetary policy as the central bank has increased the discounts to encourage the banks to lend higher amount and increase the money supply.

i tried to get the answer but i could not find it

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi