The President of Ghana launched the COVID-19 business alleviation program in collaboration with the National Board for Small Scale Industries (NBSSI), Trade Associations, and some selected banks. Under the program, the government is giving funds without interest to selected financial institutions for onward lending to businesses at a 3% interest. The program is aimed at helping beneficiaries to sustain their businesses during the Covid-19 pandemic. Use this information to answer the following questions.

a. Explain the monetary policy tool being used by the government under this program. [Maximum of half a page] (5 Marks)

b. Ifthegovernmenthadpeggedtheinterestrateundertheprogramatthe monetary policy rate, will this have been a better way of setting the rate? Explaintheadvantagesanddisadvantagesofeachscenario. [Notmorethan one-page] (7.5 Marks)

c. Explaintheexpectedimpactofthelow-interestrateprogramongross domestic product (GDP), articulating the possible pathways.