How do specialized lending channels created by central banks affect the economy during a recession?
What will be an ideal response?
Central banks occasionally invent additional ways of increasing the supply of credit during financial crises by creating specialized lending channels. These increase lending in the credit market and thus indirectly increase the demand for goods, services, and labor.
Economics
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A rule that specifies the highest price that a regulated firm is permitted to set is called
A) rate of return regulation. B) price cap regulation. C) maximum price regulation. D) average/marginal cost pricing.
Economics
Why did banks increase their holdings of excess reserves during the Financial Crisis of 2007-2009?
What will be an ideal response?
Economics