Expansionary policy is to economic stimulation as lowering interest rates is to what?

Expansionary policy is a way for the government or central bank to boost the economy, often by increasing spending or lowering taxes. When we talk about lowering interest rates, it is similar because it also aims to stimulate economic activity. Lower interest rates make it cheaper for people and businesses to borrow money, which encourages them to spend and invest more. For example, if a small business can get a loan at a lower interest rate, it might invest in new equipment or hire more workers, which helps the economy grow. So, just as expansionary policy encourages growth, lowering interest rates encourages investment and spending.