In a mild recession, which expansionary policy is most likely to effectively stimulate investment and reduce unemployment?

In a mild recession, the most effective expansionary policy to stimulate investment and reduce unemployment is often lowering interest rates. When the central bank decreases interest rates, borrowing money becomes cheaper for businesses and individuals. This encourages companies to invest in new projects, buy equipment, or hire more workers, which can help reduce unemployment. For example, if a local factory can borrow money at a lower interest rate, it might decide to expand its operations and hire additional staff. As more people get jobs and businesses grow, the economy can start to recover from the recession.