Question

The existence of dollars in foreign banks can reduce the efficacy of a tighter policy a. because businesses refuse to borrow and spend when they see that foreign rates are lower than U.S. rates. b. because lower foreign interest rates reduce consumer confidence in the domestic economy. c. because businesses may be able to borrow from foreign banks. d. very little because businesses are not allowed to borrow from foreign sources.

Name: the existence of dollars in foreign banks can reduce the efficacy of a tighter policy a because businesses refuse to borrow and spend when they see that foreign rates are lower than us rates 79112
Uploaded: 2022-05-13T05:29:56-08:00
Duration: 1 min 7 s
Channel: Jennifer Stoner
Description: the existence of dollars in foreign banks can reduce the efficacy of a tighter policy a because businesses refuse to borrow and spend when they see that foreign rates are lower than us rates 79112

          The existence of dollars in foreign banks can reduce the efficacy of a tighter policy
a. because businesses refuse to borrow and spend when they see that foreign
rates are lower than U.S. rates.
b. because lower foreign interest rates reduce consumer confidence in the
domestic economy.
c. because businesses may be able to borrow from foreign banks.
d. very little because businesses are not allowed to borrow from foreign
sources.

Added by Aimee M.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Jennifer Stoner

05/13/2022

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The existence of dollars in foreign banks can reduce the efficacy of a tighter policy a. because businesses refuse to borrow and spend when they see that foreign rates are lower than U.S. rates. b. because lower foreign interest rates reduce consumer confidence in the domestic economy. c. because businesses may be able to borrow from foreign banks. d. very little because businesses are not allowed to borrow from foreign sources.