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?

Related Mcqs:

Which of the following statements about money is not true ?

A. A debit card is not really money because it is only a means of transferring money between accounts B. All the wealth that people hold, in whatever form, should be considered as money C. Wealth held in the current account you hold with your bank is almost as convenient for buying things as wealth … Which of the following statements about money is not true ?Read More...

If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?

A. Suffer even more B. not be reduced as much as it would have been C. be replaced by foreign investment D. be replaced by consumer spending...

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

A. rise; increase, increase B. rise, falls, increase C. rise, increase, falls D. rise, falls, falls...

The interest rate is determined in ?

A. the money and labor markets B. the goods and labor markets C. the goods market D. the money markets...

If banks and the private sector decide to hold less cash the money multiplier will be ?

A. Unchanged B. Larger C. Smaller D. Unstable...