Which of the following reduced the demand stimulus effects of monetary policy during the years following the 2008-2009 recession?
a. Failure of the Fed to provide sufficient reserves to the banking system for the extension of new loans.
b. A substantial reduction in the velocity of money resulting from the historically low interest rates.
c. The Fed's high interest rate policy that reduced private investment.
d. Inability of the Fed to gain approval from Congress to purchase assets other than bonds issued by the federal government.
B
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Why do monopolistic firms practice international dumping?
a. They face the same demand conditions in their domestic and foreign markets. b. They face more elastic demand conditions in their domestic market than in their foreign markets. c. They face more elastic demand conditions in their foreign market than in their domestic market. d. They are able to take advantage of increasing costs.
Julio makes wine and beer. Last year he made 20 bottles of wine and 20 cases of beer. If the price of grapes goes down (making wine cheaper to make), Julio will be able to make the same amount of wine and more beer
a. True b. False Indicate whether the statement is true or false