How does conventional monetary policy, which in the US means injecting cash into the economy by the Federal Reserve by buying bonds from the market, usually stimulate the economy?
A. By increasing the interest rates, thus giving people an incentive to save more through a higher rate of return on their savings
By lowering the debts of the private sector and allowing them to spend more
C. By lowering interest rates, thus giving an incentive for businesses to invest and consumers to borrow and spend
D. By increasing the price of government bonds which improves the currency and the nation's international competitiveness
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