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Other Fields Homework Help Economics Topic started by: OliviaMilam0807 on Nov 27, 2022



Title: When interest rates are artificially lowered by the central bank through expansionary monetary polic
Post by: OliviaMilam0807 on Nov 27, 2022
When interest rates are artificially lowered by the central bank through expansionary monetary policy,

Select one:
a. the economy will likely move into a recession in the longer run.
b. production of capital goods increases in industries that have access to cheap credit.
c. longer-term investment projects appear to be more profitable.
d. the economy experiences an unsustainable boom phase.
e. all of the other answers are correct.


Title: Re: When interest rates are artificially lowered by the central bank through expansionary monetary ...
Post by: bio_man on Nov 28, 2022
(E), clearly d and b are right, hence (e)