Why would the stimulating effect be smaller than normal

Reference no: EM13183452

Lenders and borrowers are all so nervous that the huge planned increase in the money supply ,refrred to as 'quantitative easing' , may have much smaller stimulating effect than it would have in normal circumstances.This strategy is not without risks in terms of future.

a-this clip is from 2008.why would lenders and borrowers both be nervous?

b-why would the stimulating effect be smaller than normal ?

c-what does this tell us about the income multiplier with respect to the money supply?

d- Complete the final senence ?

Reference no: EM13183452

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