Which of the Following Is NOT True of the Interest

question 75

Multiple Choice

Which of the following is NOT true of the interest rate channel?

• A) Bank loans play no special role.
• B) The Fed changes the real interest rate which affects the components of aggregate expenditure.
• C) Borrowers are indifferent as to how and from whom they raise funds.
• D) Alternative sources of funds are not substitutes for each other.

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