In the Bank Lending Channel, an Important Reason for Output

question 82

Multiple Choice

In the bank lending channel, an important reason for output increases in the short run after an expansionary monetary policy is that

• A)the funds directly available for households and firms to spend will increase.
• B)prices will increase, making increased production more profitable for firms.
• C)the increase in government spending from an expansionary monetary policy increases output through the multiplier effect.
• D)the ability of banks to make loans will increase.

---

Definitions:

Distribution Complexity

The degree of difficulty and intricacy involved in distributing products or services from the producer to the consumer.

Glocalization

The practice of conducting business according to both local and global considerations, blending global strategies with local adaptations.

Cultural Sensitivity

Awareness and respect for cultural differences, playing a crucial role in effective communication and interaction in diverse environments.

Advertisements

Notices, visuals, or audio messages intended to promote or sell a product, service, or idea through various media channels.