Monetary Policy Is Often Ineffective in a Banking Crisis Because

question 125

Multiple Choice

Monetary policy is often ineffective in a banking crisis because businesses and consumers:

• A)respond to low interest rates by borrowing and spending so much that inflation results.
• B)borrow large amounts because interest rates are so low, but they are unwilling to spend the money that they have borrowed.
• C)aren't willing to borrow and spend even though interest rates are very low.
• D)aren't willing to borrow and spend because interest rates are so high.

---

Definitions:

Working Class

A social class broadly characterized by manual labor occupations and lower economic status.

Adulthood

A stage of human development characterized by physical, psychological, and social maturity, legal responsibility, and the capability to manage personal and societal affairs.

American Society

The societal structure of the United States, characterized by its cultural diversity, social systems, and historical developments.

Callback Rates

A measure used in the hiring process to indicate the percentage of applicants who receive a return contact or interview invitation after submitting a job application or attending an interview.