Channel of transmission of monetary policy

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Reference no: EM131088795

1. If the money supply increases too rapidly then

(a) inflationary expectations will rise.

(b) government spending will decrease.

(d) investment spending will fall.

2. Monetary policy probably affects all of the following except

(a) housing investment.

(b) consumer durable investment.

(d) federal government budget outlays.

3. Which of the following is not a channel of transmission of monetary policy?

(a) Reg Q interest rate ceilings

(b) Consumer spending for durable goods and housing

(d) Business investment in real assets

Reference no: EM131088795

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