Which of the Following Statements Is Correct

question 38

Multiple Choice

Which of the following statements is correct?

• A)Because in practice few borrowers are bank-dependent, the bank lending channel is of little real-world importance.
• B)In the money channel, an expansionary monetary policy may cause a leftward shift in the AD curve.
• C)In the bank lending channel, an expansionary monetary policy can increase output in the short run even if it results in an increase in the real interest rate.
• D)In the money channel, an expansionary monetary policy affects the money supply curve but not the money demand curve.

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Definitions:

Correlation

A statistical measure that expresses the extent to which two variables change together, but does not necessarily imply causation.

Variables

Elements, features, or factors that can change and have different values across individuals or situations in a research study.

Relationship

A connection, association, or involvement between two or more parties.

Correlation

describes the statistical relationship between two variables, indicating whether and how strongly they change together, without implying causation.