In the Money Channel View of How Changes in the Money

Multiple Choice

In the money channel view of how changes in the money supply affect output and the real interest rate in the short run,

A) other financial assets are considered to be poor substitutes for bank loans by many borrowers.
B) banks are passive intermediaries, meeting the public's demand for money by supplying deposits.
C) credit crunches have a very important role to play.
D) interest rates do not necessarily bring the volume of funds desired to be lent by savers into equilibrium with the volume of funds desired to be borrowed by borrowers.