Which of the following is NOT true of the interest rate channel?
A) Bank loans play no special role.
B) The Fed changes the real interest rate which affects the components of aggregate expenditures.
C) Borrowers are indifferent as to how and from whom they raise funds.
D) Alternative sources of funds are not substitutes for each other.
D
Economics
You might also like to view...
What happens to overall living standards when countries trade with other countries?
What will be an ideal response?
Economics
Expansionary fiscal policy can be used to reduce unemployment by
A) increasing long-run aggregate supply so as to raise real GDP. B) increasing aggregate demand so as to raise real GDP. C) reducing nominal wages so as to encourage firms to hire more workers. D) eliminating inefficiencies from labor markets.
Economics