Monetary Policy Is Often Ineffective in a Banking Crisis Because

Multiple Choice

Monetary policy is often ineffective in a banking crisis because businesses and consumers:

A) respond to low interest rates by borrowing and spending so much that inflation results.
B) borrow large amounts because interest rates are so low, but they are unwilling to spend the money that they have borrowed.
C) aren't willing to borrow and spend even though interest rates are very low.
D) aren't willing to borrow and spend because interest rates are so high.