Multiple Choice
Which of the following weakened the demand stimulus effects of the fed's low interest rate policy during the years following the 2008-2009 recession?
A) Rising stock prices in response to the low-interest rate policy.
B) The lower cost of borrowing to undertake business investment.
C) An increase in the velocity of money.
D) A reduction in earnings of senior citizens and others from money market accounts, saving deposits, and similar forms of savings.
Correct Answer:
Verified
Correct Answer:
Verified
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