When Expansionary Monetary Policy Pushes Interest Rates to Artificially Low

question 50

Multiple Choice

When expansionary monetary policy pushes interest rates to artificially low levels,

• A) the demand for and prices of interest-sensitive goods, like housing, will increase.
• B) people will delay their purchases of interest-sensitive goods, like housing, into the future.
• C) the demand for interest-sensitive goods, like housing, will increase, but their prices will decline.
• D) the demand for and prices of interest-sensitive goods, like housing, will decline.

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