An expansionary monetary policy may be less effective than a restrictive monetary policy because ________.

A. commercial banks may not be able to find good loan customers
B. fiscal policy always works at cross purposes with an expansionary monetary policy
C. the Federal Reserve Banks are always willing to make loans to commercial banks that are short of reserves
D. changes in exchange rates complicate an expansionary monetary policy more than they do a restrictive monetary policy


Answer: A

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