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When Expansionary Monetary Policy Pushes Interest Rates to Artificially Low

Question 50

Multiple Choice

When expansionary monetary policy pushes interest rates to artificially low levels,


A) the demand for and prices of interest-sensitive goods, like housing, will increase.
B) people will delay their purchases of interest-sensitive goods, like housing, into the future.
C) the demand for interest-sensitive goods, like housing, will increase, but their prices will decline.
D) the demand for and prices of interest-sensitive goods, like housing, will decline.

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