Which of the Following Is NOT a Reason That a Stimulative

Multiple Choice

Which of the following is NOT a reason that a stimulative monetary policy may be ineffective?

A) The effects of a stimulative policy may be disrupted by expectations of inflation.
B) Retirees who rely on interest income may restrict their spending.
C) Lending institutions may increase their standards for borrowers, so some potential borrowers may not qualify for loans.
D) Higher interest rates caused by the stimulative policy might reduce economic growth.