What are the main tools to used to meet the key economic objective of ecomic growth?

Economic growth is an increase in the real gdp in the economy. One tool that could be used changing the interest rates. Interest rates are the cost of borrowing, and reward for saving. In order to increase economic growth the interest rates need to be reduced. This will encourage people to borrow more money and spend it in the economy, therefore creating growth.
Another tool that could be used is the exchange rates. This is the price of one currency in terms of another. In order to increase economic growth a country should devalue their currency, making exports cheaper. This will encourage foreigners to purchase their exports, and so will boost economic growth

Answered by Victoria R. Economics tutor


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