When monetary policy works by affecting the supply and demand for credit, the mechanism is referred to as
a. the exchange rate channel.
b. the credit channel.
c. the interest rate channel.
d. the fiscal channel.
Answer: B
When monetary policy works by affecting the supply and demand for credit, the mechanism is referred to as
a. the exchange rate channel.
b. the credit channel.
c. the interest rate channel.
d. the fiscal channel.
Answer: B