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:

The main reason that people hold money to buy things is referred to as the ?

A. Profit motive B. Precautionary motive C. Transactions motive D. speculation motive...

Equilibrium in the Money market will change if there is ?

A. a change in the real money supply B. a change in real income C. a change in competition in the banking industry D. any of the above...

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...

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...

If the keep some money available in case I see a bargain this is an example of ?

A. asset demand for money B. transactions demand for money C. token demand for money D. precautionary demand for money...