In the bank lending channel, an expansionary monetary policy
A)will lead to a greater increase in output than in the money channel.
B)will not affect the real interest rate.
C)will result in increased spending only for firms and households dependent for credit on bank loans.
D)will lead to a larger budget deficit than in the money channel.

Question

Quizplus · Accepted Answer

The Answer of In the bank lending channel, an expansionary monetary policy
A)will lead to a greater increase in output than in the money channel.
B)will not affect the real interest rate.
C)will result in increased spending only for firms and households dependent for credit on bank loans.
D)will lead to a larger budget deficit than in the money channel.

In the Bank Lending Channel, an Expansionary Monetary Policy