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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Definitions:

Sexual Arousal

The physiological and emotional experience of excitement and pleasure, typically in response to stimuli that is considered sexual in nature.

Helping Behaviour

Actions taken to assist others without the expectation of reward or compensation, often motivated by empathy or moral values.

Emergency

A serious, unexpected, and often dangerous situation that requires immediate action.

Unforeseen

Referring to events or outcomes that were not predicted or expected, often leading to unexpected challenges or opportunities.