When Seeking to Explain the Low Interest Rates in 2005

Multiple Choice

When seeking to explain the low interest rates in 2005, the article "Excess Savings or Excess Liquidity?" makes the case that

A) excess liquidity is the primary cause since it would cause LM to shift downward leading to low interest rates and higher GDP
B) excess liquidity is the primary cause since it would cause IS to shift downward leading to low itnerest rates and lower GDP
C) excess savings is the primary cause since it would cause LM to shift downward leading to low interest rates and higher GDP
D) excess savings is the primary cause since it would cause IS to shift downward leading to low interest rates and lower GDP