When interest rates are artificially lowered through expansionary monetary policy,
A) longer-term investment projects appear to be more profitable.
B) production of capital goods increases.
C) the economy experiences an unsustainable boom phase.
D) the economy will likely fall into a recession in the longer run.
E) all of the above tend to occur.
E
Economics
You might also like to view...
If real GDP grows faster than nominal GDP, it is a sign that
A) inflation is negative. B) there is no inflation. C) there is inflation, but little. D) there is galloping inflation.
Economics
Which of the following would be considered income in kind?
A) tax refunds B) food stamps C) yard sales D) reduction in the tax rates
Economics