Which of the Following Is NOT a Reason That a Stimulative

question 34

Multiple Choice

Which of the following is NOT a reason that a stimulative monetary policy may be ineffective?

• A)The effects of a stimulative policy may be disrupted by expectations of inflation.
• B)Retirees who rely on interest income may restrict their spending.
• C)Lending institutions may increase their standards for borrowers, so some potential borrowers may not qualify for loans.
• D)Higher interest rates caused by the stimulative policy might reduce economic growth.

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Definitions:

Account Balances

The total amount of money in an account, calculated by adding all credits and subtracting all debits.

Adjusting Journal Entry

Entries made in accounting records at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Expected Life

The estimated duration over which an asset is anticipated to be usable for its intended purpose, often affecting depreciation calculations.

Accrued Salaries

Salaries that have been incurred but not yet paid, representing a liability for the employer.