The interest-rate-based monetary policy transmission mechanism emphasizes the
A. direct effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level.
B. direct effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate.
C. indirect effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate.
D. indirect effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level.
Answer: C
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Refer to Table 20-9. Suppose that the data in the table above reflect the price levels in the economy. Given that data, we can say that the cost of living rose by ________ between 2015 and 2016?
A) 2% B) 5% C) 8% D) 11% E) 13%
Which best describes the Federal Reserve district banks?
A) They are private ventures. B) They are government ventures. C) Some are private while others are government. D) They are private-government joint ventures.