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A balance sheet recession Part 2 A. is caused by the riserise of asset prices, requiring that more borrowing occur to increase asset values. B.
A balance sheet recession Part 2 A. is caused by the riserise of asset prices, requiring that more borrowing occur to increase asset values. B. makes monetary transmission faster with monetary policy because players are eager to borrow, which stimulates the economy. C. causes transmission problems for monetary policy because players resist borrowing, spending, and lending. They opt instead for the security of money and savings. D. makes it easiereasier to steer the economy towards recovery because more borrowing occurs, making it difficult to control the money supply
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