One reason that a stimulative monetary policy might fail is that savers such as retirees who rely on interest income to meet their expenses may have to reduce their spending.

Question

Quizplus · Accepted Answer

Stimulative monetary policy often involves lowering interest rates to encourage borrowing and investment. However, lower interest rates can reduce the interest income for savers, such as retirees, who rely on this income for their expenses, potentially leading them to reduce their spending.

One Reason That a Stimulative Monetary Policy Might Fail Is