All of the following have been proposed as explaining the limited effectiveness of monetary policy during and after the Financial Crisis of 2007-2009 EXCEPT:
A) recessions accompanied by financial crises tend to be severe
B) a high level of uncertainty due in part to government policy
C) the reluctance of the Fed to implement nonconventional policies
D) structural changes as important sectors of the economy were deeply affected by the financial crisis
C
You might also like to view...
What are some of the main advantages and disadvantages of the extensive financial and commercial networks linking nations today?
What will be an ideal response?
Government expenditures are considered autonomous in the model meaning that changes are the result of:
A) changes in real income. B) changes in inflation. C) changes in unemployment. D) changes in policy decisions.
If Bob has an absolute advantage over Pete in both typing and woodworking, then Bob also has a comparative advantage over Pete in both activities
a. True b. False
Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called
a. the natural rate of unemployment. b. cyclical unemployment. c. structural unemployment. d. frictional unemployment.