Even If the Expansionary Monetary Policy of the Fed Leads

question 69

Multiple Choice

Even if the expansionary monetary policy of the Fed leads to a strong recovery from the recession of 2008-2009,

• A)the general level of prices will fall in the decade immediately ahead.
• B)the Japanese experience indicates that expansionary monetary policy will not lead to long-term recovery.
• C)time lags between changes in monetary policy and when the changes exert an impact will make it difficult to promote long-term economic stability.
• D)asset prices will quickly return to their pre-recession levels,but this will cause another crash in housing and stock prices.

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