Lower interest rates which reduce the debt-servicing burden of households,thus increasing their net worth,is best described by the
A) bank lending channel.
B) money channel.
C) financial market channel.
D) balance sheet channel.
Monetary policy can have substantial effects on the economy even when nominal interest rates are very low
A) since real rates are what affect borrowing and spending decisions.
B) by improving borrower and bank balance sheets.
C) by reducing transactions costs.
D) only when the policy is substantial.
Which of the following is NOT generally recognized as a channel for monetary policy?
A) interest rate channel
B) balance sheet channel
C) financial market channel
D) bank lending channel
The ways in which monetary policy affect output and prices are known as