The Monetary Transmission Mechanism That Links Monetary Policy to GDP

question 11

Multiple Choice

The monetary transmission mechanism that links monetary policy to GDP through real interest rates and investment spending is called the

• A)traditional interest-rate channel.
• B)Tobins' q theory.
• C)wealth effects.
• D)cash flow channel.

---

Definitions:

Off-Delay Timers

Timers that begin timing when their input is turned off, delaying the off event for a preset period.

Off Delay Cycle

A control or timing function where a signal or operation is delayed from turning off after an input trigger is removed.

MCR Instruction

Master Control Reset, an instruction used in programming PLCs to control the execution of a block of logic or instructions between its start and end points.

Nonretentive Outputs

Output signals or data in a control system that do not maintain their state after a power cycle or reset.