Which of the Following Is NOT True of the Interest

question 48

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 expenditures.
• C)Borrowers are indifferent as to how and from whom they raise funds.
• D)Alternative sources of funds are not substitutes for each other.

---

Definitions:

Celebrity Endorser

A famous person who promotes or publicly supports a product, service, or brand.

Sleeper Effect

A phenomenon where a message that was initially discounted or ignored gains persuasiveness over time.

Message Source

The originator of a communication or information that is being conveyed to an audience.

Match-up Hypothesis

The theory suggesting that the effectiveness of an endorsement depends on the compatibility between the endorser and the product or brand being endorsed.