One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?

Related Mcqs:

Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will ?

A. rise by an amount that depends on the bank’s reserve ratio B. rise by less than the amount of the deposit C. fall by exactly the amount of the deposit as long as the bank does not change its reserve ratio D. fall by exactly the amount of the deposit as long as the … Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the...

The chain of events that results from an expansionary monetary policy is ?

A. aggregate output increases the demand for money increase the interest rate increase planned investment B. money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase C. money supply increases the interest rate increase planned investment increases aggregate output increases and money demand increases D. money demand increases … The chain of events that results from an expansionary monetary policy is ?Read More...

Which of the following policy actions by a central bank is likely to increase the money supply ?

A. Increasing the refinancing rate B. All of these will increase the money supply C. Buying government bonds in open market operations D. Increasing reserve requirements...

Which of the following events will lead to a decrease in the equilibrium interest rate ?

A. A sale of government securities by the central bank B. An increase in the level of aggregate output C. An increase in the discount rate D. A decrease in the price level...

A reduction in interest rates, causes an increases in the monetary base that results in an _________ in the availability of consumer credit and a ________ in the cost of consumer credit?

A. reduction, increase B. reduction, reduction C. increase, reduction D. increase , increase...