A General Unwillingness of Banks to Lend

question 83

Multiple Choice

A general unwillingness of banks to lend

• A)results in monetary policy being ineffectual in the bank lending channel.
• B)results in monetary policy being ineffectual in the balance sheet channel.
• C)results in monetary policy being ineffectual in the money channel.
• D)does not result in monetary being ineffectual in the bank lending, balance sheet, or money channels.

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Definitions:

Central-Route

A method of persuasion that involves deeply processing the content of the message, considering logical and factual arguments.

Attribution Theory

The theory of how people make attributions.

Primacy Effect

Tendency to remember information at the beginning of a body of information better than the information that follows.

Cognitive Dissonance

A psychological theory that suggests discomfort arises when a person holds conflicting beliefs, attitudes, or values, often leading to changes in one of the beliefs or behaviors.