An Increase in Financial Frictions Results in ________

question 55

Multiple Choice

An increase in financial frictions results in ________.

• A)an increase in the federal funds rate
• B)a reduced supply of credit to households and businesses
• C)a decrease in short-run aggregate supply
• D)an upward shift of the monetary policy curve

---

Definitions:

Permission Marketing

A marketing strategy where businesses send promotional messages to individuals only after receiving their consent.

Online Advertising

The practice of using internet-based platforms to promote products, services, or brands to potential customers.

Degree of Digitization

The extent to which digital technology is integrated into the operations, products, or services of an entity.

Delivery Agent

An individual or company that is responsible for delivering goods from one place to another.