If consumers and businesses are especially pessimistic, as in the Great Recession of 2007-2009, and do not want to borrow money from banks, then the use of an expansionary money policy is likened to
A) completing the circle.
B) pushing on a string.
C) ﬁlling in the blanks.
D) checking the list.

Question

Quizplus · Accepted Answer

When consumers and businesses are not willing to borrow despite expansionary monetary policies, it is often referred to as "pushing on a string". This means that the central bank is unable to stimulate spending and investment despite lowering interest rates and increasing the money supply, as there is a lack of demand for credit.

If Consumers and Businesses Are Especially Pessimistic, as in the Great