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True or False. Provide at least five sentences of Explanations or calculation. One of the limitations of a stimulative monetary policy is the impact of credit crunch. During a weak economy, the Fed st

True or False. Provide at least five sentences of Explanations or calculation. One of the limitations of a stimulative monetary policy is the impact of credit crunch. During a weak economy, the Fed stimulates the economy by decreasing the bank funds and increasing the interest rates. The credit crunch does occur because the high interest rate payment may discourage potential borrowers to borrow. 

True or False. Provide at least five sentences of Explanations or calculation. One of the limitations of a stimulative monetary policy is the impact of credit crunch. During a weak economy, the Fed stimulates the economy by decreasing the bank funds and increasing the interest rates. The credit crunch does occur because the high interest rate payment may discourage potential borrowers to borrow. 

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