Analysts have attempted to model the impact of monetary policy on net worth by emphasizing
A) the impact of lower interest rates on business spending on fixed investment.
B) the impact of lower interest rates on household spending on housing and durable goods.
C) the liquidity of balance sheet positions as a determinant of business and household spending.
D) the greater variability of business spending compared to household spending.
C
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Suppose a monopolist and a perfectly competitive firm have the same cost curves. The monopolistic firm would:
a. charge a lower price than the perfectly competitive firm. b. charge a higher price than the perfectly competitive firm. c. charge the same price as the perfectly competitive firm. d. refuse to operate in the short run unless an economic profit could be made. e. refuse to operate in the short run if an economic loss was present.
The price of medical care in the United States has:
A. remained relatively unchanged in recent years. B. risen slower than the overall price level. C. risen at the same pace as the overall price level. D. risen faster than the overall price level.