During a mild recession, policymakers can implement various expansionary measures. Which of the following actions best exemplifies a direct strategy to increase investment and reduce unemployment?

During a mild recession, one effective way for policymakers to boost investment and reduce unemployment is by lowering interest rates. When interest rates are lower, borrowing money becomes cheaper for businesses and individuals. This encourages companies to take loans to invest in new projects or expand their operations, which can create more jobs. For example, if a construction company can borrow at a lower rate, it might decide to build more homes, hiring more workers in the process. By making it easier for businesses to invest, the economy can start to recover and unemployment can decrease.