Question

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: completing the circle pushing on a string filling in the blanks checking the list

Answer 1

Checking the list is the correct answer to this multiple choice question. This question deals with macroeconomic theory and the use of an expansionary money policy is likened to checking a list when dealing with economics.

Answer 2

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 checking the list.

An expansionary monetary policy is when a central bank uses the tools they have to help stimulate the economy financially. They hope to increase monetary supply, lower interest rates and increase the demand for items.