Q 70

Which of the following statements is correct? A) Because in practice few borrowers are bank-dependent, the bank lending channel is of little real-world importance. B) In the interest rate channel, an expansionary monetary policy may cause a leftward shift in the AD curve. C) In the bank lending channel, an expansionary monetary policy can increase output in the short run even if it does not result in a decrease in the real interest rate. D) In the interest rate channel, an expansionary monetary policy affects spending but not output.

Multiple Choice