The Credit View of the Effects of Monetary Policy Always

question 28

True/False

The credit view of the effects of monetary policy always depends on how lending affects investment.

---

Definitions:

Hormone

A chemical substance produced in the body that influences physiological activity by being transported in tissue fluids such as blood to stimulate specific cells or tissues into action.

Endorphins

Neurotransmitters produced by the brain that act as natural painkillers and are also associated with feelings of pleasure or euphoria.

Neurotransmitters

Chemical messengers that transmit signals across a synapse from one neuron to another in the brain and nervous system.

Norepinephrine

A neurotransmitter involved in arousal and the regulation of blood pressure, mood, and sleep cycles.