The use of monetary policy to shift aggregate demand to the right in a severe recession is like
A) pushing on a string.
B) putting all your eggs in one basket.
C) pulling on one's purse-strings.
D) pushing the envelope.

Question

Quizplus · Accepted Answer

Pushing on a string refers to the idea that monetary policy can be ineffective in stimulating demand if consumers and businesses are already hesitant to spend or invest. It is difficult to force them to do so through monetary policy measures, hence the analogy of pushing a string.

The Use of Monetary Policy to Shift Aggregate Demand to the Right