The Interest-Rate Channel of Monetary Policy Transmission Appears to Be

question 10

Multiple Choice

The interest-rate channel of monetary policy transmission appears to be:

• A) weak because the investment component of total spending isn't very sensitive to interest rates.
• B) weak because the investment component of total spending is very sensitive to interest rates.
• C) strong because the investment component of total spending isn't very sensitive to interest rates.
• D) strong because the investment component of total spending is very sensitive to interest rates.

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