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  3. Study Set
    Money the Financial System
  4. Exam
    Exam 27: Information Problems and Channels for Monetary Policy
  5. Question
    The Bank Lending Channel
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The Bank Lending Channel

Question 2

Question 2

Multiple Choice

The bank lending channel


A) emphasizes the role of interest rates in the money supply process.
B) emphasizes the importance of borrowers' net worth to the decision of lenders to grant loans.
C) emphasizes the behavior of bank-dependent borrowers.
D) is another name for the money channel.

Correct Answer:

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