Even Though the Monetary Policy Is Very Quick Recognize and Respond

question 16

Multiple Choice

Even though the monetary policy is very quick recognize and respond to the coming of a recession than fiscal policy,it has proven in the 2000's to be less affective in avoiding or bring the economy out of the recession because

• A)Increased investment by the private sector has not been forthcoming in response to the reduction in interest rates.
• B)Consumers have tended to increase saving and decrease consumption.
• C)Our economy has increased imports during recessions.
• D)The government has imposed fiscal policy to counteract the monetary policy.

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Definitions:

World War II

A global military conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Tank and Airplane Factories

Industrial facilities specializing in the manufacturing of military vehicles and aircraft, often significant for national defense.

Air Pollution

The presence of substances in the air that are harmful to human health, the environment, or cause climate change.

Opportunity Costs

Leaving potential advantages from various options on the table by picking a particular one.