Chapter 23 - Monetary Policy, Output, and Inflation in the Challenges Facing Central Bankers97.(p. 578)The name balance-sheet channel of monetary policyimplies that monetary policy has to impact categories on a firm's balance sheet. Explain how the balance sheet of a firm will be impacted by an increase in interest rates.
AACSB: AnalyticBLOOMS: KnowledgeLOD: 398.(p. 579)Why should the supply of loans increase as interest rates fall?
AACSB: AnalyticBLOOMS: ComprehensionLOD: 399.(p. 579)How does adverse selection factor into explaining the reduced supply of loans when interest rates increase?