Which of the following weakened the demand stimulus effects of the fed's low interest rate policy during the years following the 2008-2009 recession?
a. Rising stock prices in response to the low-interest rate policy.
b. The lower cost of borrowing to undertake business investment.
c. An increase in the velocity of money.
d. A reduction in earnings of senior citizens and others from money market accounts, saving deposits, and similar forms of savings.
D
You might also like to view...
In the prosperity phase of the business cycle, aggregate demand increased raising the price level and employment. But later, in the aftermath of the prosperity phase, aggregate demand slackened so that the price level and employment fell. People who lost their jobs during this phase are considered to be part of the economy's
a. cyclical unemployment b. structural unemployment c. permanent unemployment d. frictional unemployment e. underemployment
Which of the following goods are both non-rival and non-excludable?
a. A program initiated by the government to improve adult literacy b. A program initiated by a university to improve the quality of education for its students c. A meal ordered by Kevin in a restaurant d. A congested subway ride