12: Expansionary monetary policy by a nation's Central Bank is designed to: a) Increase the amount of reserves in the nation's private commercial banking system. b) Lower the over night loan rate at which private commercial banks can lend reserves to and borrow reserves from each other. c) Lower the rate at which firms and households can borrow money. d) Increase interest-sensitive spending by firms and households. e) Answers a, b, c and d