Why didn't the Fed's quantitative easing policies exert a stronger impact on aggregate demand and lead to a more rapid recovery during 2010-2012?
a. The low interest rates accompanying the policy failed to increase stock prices.
b. Even though the Fed made additional reserves available to the banking system, the policy did not result in lower interest rates.
c. The velocity of money increased, partially offsetting the impact of the Fed's low interest rate policy.
d. The earnings of senior citizens and others from money market accounts, saving deposits, and other forms of savings fell, reducing their incentive to spend and thereby increasing aggregate demand.
D
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Explain how accounting rules have been beneficial for markets
What will be an ideal response?
Workers who are unemployed but are not actively looking for jobs are referred to as:
A) laid back workers. B) laid off workers. C) discouraged workers. D) abandoned workers.
Where large amounts of capital are used, the dominant form of business organization is the
A) corporation. B) partnership. C) proprietorship. D) partnership in manufacturing and the corporation in finance.
Firms price discriminate
A) to take advantage of customers. B) to reduce the quantity sold so as to reduce production costs. C) to increase profits. D) to increase total economic surplus.