With respect to consumer behavior, the interest-rate channel of monetary policy transmission appears to be:
A) Weak because people's decisions to purchase cars or houses depend on short-term rates rather than long-term rates
B) Weak because people's decisions to purchase cars or houses depend on long-term rates rather than short-term rates
C) Strong because people's decisions to purchase cars or houses depend on the short-term rates that policymakers can change
D) Strong because it affects both spending and saving decisions
Correct Answer:
Verified
Q7: Research has revealed that the investment component
Q8: The impact of monetary policy on the
Q9: The Federal Reserve's surveys of bank loan
Q10: Which of the following statements is most
Q11: The Federal Reserve surveys lending officers regularly
Q13: The monetary policy transmission mechanism refers to
Q14: Decreases in the real interest rate will
Q15: The direct impact on spending of short-term
Q16: Changing short-term interest rates have a(n):
A)Strong and
Q17: An easing of monetary policy should:
A)Increase spending
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