Which of the following are reasons why stimulative monetary policy might fail? Check all that apply.
a. Despite an increase in the money supply, banks may still be unwilling to extend credit to high-risk borrowers because they have a responsibility to their stakeholders to avoid loans that are likely to default.
b. Due to low interest rates, individuals who rely on interest income to cover expenses may spend less money, offsetting the intended effects of the monetary policy.
c. Businesses and households recognize that the stimulative monetary policy will result in higher inflation, so they borrow and make planned expenditures prior to the price increase, offsetting the effects of the policy.
d. Monetary policy typically affects long-term interest rates and, as a result, can't help stabilize the economy in the short run.