The expression, "You can lead a horse to water, but you can't make it drink" is an analogy describing the:
A) inflexibility of monetary policy tools.
B) long operational lags faced by monetary policy.
C) liquidity trap.
D) long recognition lags faced by monetary policy.

Question

Quizplus · Accepted Answer

The expression is an analogy for a liquidity trap, where monetary policy becomes ineffective because people hoard cash instead of spending or investing, similar to leading a horse to water but not being able to make it drink.

The Expression, "You Can Lead a Horse to Water, but You