In the Bank Lending Channel, an Expansionary Monetary Policy

question 81

Multiple Choice

In the bank lending channel, an expansionary monetary policy

• A)will lead to a greater increase in output than in the money channel.
• B)will not affect the real interest rate.
• C)will result in increased spending only for firms and households dependent for credit on bank loans.
• D)will lead to a larger budget deficit than in the money channel.

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Credible Evidence

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