Which of the Following Is Not a Reason Why After

question 131

Multiple Choice

Which of the following is not a reason why after the Great Recession, when the recovery turned out to be very weak, economic policy in the U.S.had to turn forcefully toward fiscal policy?

• A)Monetary policy suffered from cyclical asymmetry.
• B)The banking system fell into a liquidity trap.
• C)Interest rates had already been cut to very low levels.
• D)There was a time lag implementing monetary policy.

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Definitions:

Creativity

The ability to produce original and valuable ideas or solutions.

Centralization

The degree to which decisions are made at the top of the organization.

Simple Structure

A centralized form of organization that emphasizes a small technical and support staff, strong centralization of decision-making in the upper echelon, and a minimal middle level.

Upper Echelon

A top-level executive team in an organization.