Solved

With Respect to Consumer Behavior, the Interest-Rate Channel of Monetary

Question 12

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents