Assume the Fed creates excess reserves in the banking system by buying government bonds, but banks do not make more loans because economic conditions are bad. This situation is a problem of:
A. "Putting all your eggs in one basket"
B. "Not in my own back yard"
C. "There ain't no such thing as a free lunch"
D. "You can lead a horse to water, but you can't make it drink"
D. "You can lead a horse to water, but you can't make it drink"
Economics
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How is the price of a financial asset, such as government bonds, related to the interest rate?
What will be an ideal response?
Economics
Which of the following methods of picking stocks is not consistent with fundamental analysis?
a. doing research such as thoroughly reading and analyzing companies' annual reports b. choosing mutual funds that are managed by individuals with good reputations c. viewing individual stock prices as unpredictable d. relying upon the advice of Wall Street analysts
Economics