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Which of the following are reasons why stimulative monetary policy might fali? Check alf that apply, Businesses and households recognize that the stimulative monetary policy will result in higher infation but don't adjust their borrowing and spending habits until after the price increase, Despite an increase in the money supply, banks may still be unwilling to extend credit to high-risk borrowers because they do not qualify for loans or are unwilling to pay the high-risk premiums to cover their default risk. Monetary policy typically affects long-term interest rates and, as a result, can't help stablize the economy in the short run. Due to low interest rates, individuals who rely on interest income to cover expenses may spend less money, oflsetting the intended effects of the monetary policy