A Potential Problem with Expansionary Monetary Policy Is That Banks

question 56

Multiple Choice

A potential problem with expansionary monetary policy is that banks can

• A) be loaned up prior to open-market operations.
• B) be unwilling to lend.
• C) decide that a recession is best for the economy.
• D) Each of these answers is correct.

---

Definitions:

Visual System

The part of the central nervous system which gives organisms the ability to process visual detail, enabling the formation of images.

Neural Impulses

Electrical signals that travel along neurons, enabling communication within the brain and between the brain and the rest of the body.

Light Energy

The visible form of electromagnetic energy that is perceived by the human eye.

Subliminal Priming

This involves influencing a person's behavior or decisions by exposing them to stimuli below their conscious awareness.