Which of the Following Is NOT True of the Interest

question 4

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:

Items Sold

The total quantity of products or services sold by a business within a specific period.

Razor-And-Razor-Blade

A business model that sells a primary product at a low price (or gives it away) to drive the sales of related consumable products.

Disposable Unit

An item or component meant for a single use or limited time period before being discarded or replaced.

Smoker

An individual who consumes tobacco products through the act of smoking.