What is the purpose of loose monetary policy?

Loose monetary policy is where the Bank of England make the decision to decrease interest rates, therefore lowering the cost of borrowing money and lowering the reward of saving money, meaning more spending occurs.

AG
Answered by Alexander G. Economics tutor

1891 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is a Production Possibility Frontier?


How much do I need to write for the long answer questions/essays at the end of the paper?


How can we use price elasticity of demand to determine the incidence of a tax on a good?


Why are no supernormal profits made in perfect competition in the long run?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences