Why may an expansionary monetary policy be less effective than a restrictive monetary policy? the Federal...
Why may an expansionary monetary policy be less effective than a restrictive monetary policy?
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the Federal Reserve Banks are always willing to make loans to commercial banks which are short of reserves. |
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commercial banks may not be able to find loan customers. |
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fiscal policy always works at cross purposes with an expansionary monetary policy. |
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changes in exchange rates complicate an expansionary monetary policy more than it does a restrictive monetary policy. |
Homework Answers
"B"
For an expansionary policy to work the banks have to lend that money to interested borrowers, If the banks cannot find a borrower in the market then the expansionary policy will be ineffective.
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Why may an expansionary monetary
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