Interest rates in the United States were low for an extended period after the recession of 2001 . Many cite these low levels as a major reason for fueling housing speculation that caused the Great Recession. Which of the following was a cause of low interest rates in the United States?
a. Loose monetary policies by the Federal Reserve.
b.Muted inflationary expectations.
c. Strong capital inflows from foreign countries with high saving rates.
d. All of the above.
Question 2
Which of the following effects will not increase (i.e., shift to the right) the aggregate supply curve?
a. An increase in the average national price level.
b. A decrease in the price of fuel.
c. An appreciation of the domestic currency.
d. All of these answers are correct.
e. None of these answers is correct.
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