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Author Question: Which of the following is NOT true of the interest rate channel? A) Bank loans play no special ... (Read 113 times)

Pea0909berry

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on: Jun 30, 2018
Which of the following is NOT true of the interest rate channel?
 
  A) Bank loans play no special role.
  B) The Fed changes the real interest rate which affects the components of aggregate expenditures.
  C) Borrowers are indifferent as to how and from whom they raise funds.
  D) Alternative sources of funds are not substitutes for each other.

Question 2

With a linear production function in labor only, which of the following must be true?
 
  A) The representative household works as much as possible.
  B) The representative firm makes large profits.
  C) The real wage equals total factor productivity.
  D) The marginal product of labor exceeds the real wage.


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otokexnaru

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


Pea0909berry

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Reply 2 on: Jun 30, 2018
Wow, this really help

flexer1n1

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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