Which of the following schematics most accurately represents ...

[Jkov05]

Which of the following schematics most accurately represents economic fluctuations during a business cycle?
 
  A) Shock -> Spending response by households and firms -> Multiplier effect -> Change in real GDP
  B) Shock -> Multiplier effect -> Spending response by households and firms -> Change in real GDP
  C) Shock -> Multiplier effect -> Change in real GDP -> Spending response by households and firms
  D) Shock -> Change in real GDP -> Spending response by households and firms -> Multiplier effect

Question 2

Which of the following is NOT generally recognized as a channel for monetary policy?
 
  A) interest rate channel
  B) balance sheet channel
  C) financial market channel
  D) bank lending channel

[nekcihc358]

Answer to Question 1

A

Answer to Question 2

C

[Jkov05]

Thanks for the timely response, appreciate it

[gcook]

Excellent