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Which of the following is not a reason that a stimulative monetary policy may be ineffective? The effects of a stimulative policy may be disrupted
Which of the following is not a reason that a stimulative monetary policy may be ineffective?
The effects of a stimulative policy may be disrupted by expectations of inflation. |
Retirees who rely on interest income may restrict their spending |
Lending institutions may increase their standards for borrowers, so some potential borrowers may not qualify for loans. |
Higher interest rates encourage individuals to increase their savings. |
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