MARK ALL THAT APPLY: Consider the video on monetary policy we watched in class. Based on that
Question:
MARK ALL THAT APPLY: Consider the video on monetary policy we watched in class. Based on that video, which statements are true?
Question options:
Interest rates were already very low. They were lowered during the financial crisis in and never brought up again. Because they couldn't get much lower, they couldn't be used to make borrowing
substantially easier for businesses.
If the Fed lowers the interest rates, firms can invest in better tech to lower costs and get more productive and earn more money. The problem during the most recent downturn was that business investment wasn't the problem.
Expanding the money supply injected needed liquidity into the economy, which helped offset money that would normally come from international markets since coronavirus slowed down international trade
One of the benefits of monetary policy is that it does not suffer from the lags that can be seen with fiscal policy. This made monetary policy very effective.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr