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MMLU-Pro / 6969 / Which of the following could limit the ability of a central bank to conduct…

Problem

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question

Which of the following could limit the ability of a central bank to conduct expansionary monetary policy?

category

economics

options

  1. Investment demand is nearly perfectly elastic.
  2. Households carry very little cash holding their money in checking and saving deposits.
  3. Banks make loans with all excess reserves.
  4. Households carry a significant amount of cash, holding very little in checking and saving deposits.
  5. Money demand is nearly perfectly elastic.

src

ori_mmlu-high_school_macroeconomics

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