Answer:
The correct answer to the following question is A) following a loose monetary policy.
Explanation:
When the government has implemented loose monetary policy , it means the government wants to increase the money supply in the economy. And for this they have allowed central bank to buy government bonds from open market , which will increase money supply in the economy. Due to this the interest rate would decrease and the cost of borrowing will decrease , so this will result in increase in investment.
