Exam 27: Information Problems and Channels for Monetary Policy

A decline in bank lending during a recession

The bank lending channel

If banks become less willing to lend, which category of spending is likely to be most affected?

The key reason why loans from financial institutions and other forms of borrowing are not perfect substitutes is that

According to the reading "Priced to Perfection," what is the primary reason given as to why house prices have been able to rise significantly in the past decade?

Credit controls were removed in July 1980 because they had

For large firms economists have found that

Since World War II, contractionary monetary policy changes have had

Research has shown that the countries that suffered a banking crisis during the early 1930s

An increase in borrower net worth will result in

A decline in borrower net worth will result in

Which of the following countries did not suffer a banking crisis during the early 1930s?

Credit controls are

Which of the following statements is correct?

The strength of housing markets in many countries in the 2000s was attributed to

In the money channel, the main way in which an expansionary monetary policy increases output in the short run is by

One reason that investment spending tends to decline during recessions is that

Lower interest rates which reduce the debt-servicing burden of households, thus increasing their net worth, is best described by the

A favorable shock to productivity may raise investment by

If banks become more willing to make loans, the aggregate demand curve will