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Explain the expected impact of the low-interest rate

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Question - 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. Explain the expected impact of the low-interest rate program on gross domestic product (GDP), articulating the possible pathways.

Reference no: EM132564407

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