What key economic fact does this channel focus on

Reference no: EM131305928

1. What do economists mean by the channels of monetary policy?

2. What is the interest rate channel?

3. What is the bank lending channel? What key economic fact does this channel focus on?

4. What is the balance sheet channel? How does an increase in interest rates reduce a firm's net worth? How does a reduction in a firm's net worth affect the cost of external funding, particularly for low-net-worth firms?

Reference no: EM131305928

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