Answer to Question #338164 in Macroeconomics for Yaya

Question

The monetary transmission mechanism …

a. 

explains how the central bank transmits messages to the other banks.

a. explains how the central bank transmits messages to the other banks.

b. 

describes how the Monetary Policy Committee announces its decisions.

b. describes how the Monetary Policy Committee announces its decisions.

c. 

explains how developments in the economy affect the monetary sector, especially the banks.

c. explains how developments in the economy affect the monetary sector, especially the banks.

d. 

explains how banks create money.

d. explains how banks create money.

e. 

describes the ways in which changes in the monetary sector are transmitted to the rest of the economy.

Answer 1

The answer is "e" describes the ways in which changes in the monetary sector are transmitted to the rest of the economy.