Match the reasons why the effects of expansionary monetary policy were limited during each U.S. recession. Great Recession Drag appropriate answer(s) here Monetary policy is ineffective in the long run. The Fed did little proactively to offset the fall of the M2 money supply. Monetary policy was mostly expected by the public. Massive bank failures and money held outside of the banking system resulted in a reduced money multiplier. New bank regulations meant the downturn was at least partially due to a shift in long-run aggregate supply. Great Depression Drag appropriate answer(s) here
Match the reasons why the effects of expansionary monetary policy were limited during each U.S. recession. Great Recession Drag appropriate answer(s) here Monetary policy is ineffective in the long run. The Fed did little proactively to offset the fall of the M2 money supply. Monetary policy was mostly expected by the public. Massive bank failures and money held outside of the banking system resulted in a reduced money multiplier. New bank regulations meant the downturn was at least partially due to a shift in long-run aggregate supply. Great Depression Drag appropriate answer(s) here
Chapter17: The Philips Curve And Expetactions Theory
Section17.3: The Theory Of Rational Expectations
Problem 1YTE
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