The balance sheet channel describes ways in which interest rate changes resulting from monetary policy affect
A) the portfolio decisions of households.
B) the portfolio decisions of businesses.
C) borrowers' net worth.
D) lenders' net worth.
Question 2
One purpose of the currency board adopted in Argentina in 1991 was to ________.
A) encourage capital mobility
B) make monetary policy more effective
C) stabilize the exchange rate between the Argentine peso and the currencies of Argentina's major trading partners
D) put an end to speculative attacks on the Argentine peso
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