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Which of the Following Statements Is Correct

Question 38

Multiple Choice

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 money 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 results in an increase in the real interest rate.
D) In the money channel, an expansionary monetary policy affects the money supply curve but not the money demand curve.

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