The relationship between interest rates and stock prices is referred to as:
A. the wealth-creating mechanism of monetary policy.
B. the asset-price channel of monetary policy.
C. the investment-spending mechanism of monetary policy.
D. the interest-rate mechanism of monetary policy.
Answer: B
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Increase in capacity utilization will ________ the expenditure curve:
A) decrease. B) increase. C) not change. D) none of the above.
According to economist Paul Romer, economies that wish to experience growth must
A) invest most of their savings in national defense. B) invest in knowledge. C) drastically lower their standards of living. D) become command economies.
Which of the following would fall under the "rule of reason doctrine?"
a. General Motors colludes with Ford to fix the price of their cars b. Coke and Pepsi collude to limit the quantity of soft drinks on the market c. Intel dominates the market for computer processors with a 95% market share d. Reynolds American, Inc. and Lorillard, Inc. agree to limit the introduction of new cigarette brands e. two local restaurants agree to increase their prices by 10%
The use of money as a medium of exchange requires a double coincidence of want
a. True b. False Indicate whether the statement is true or false