Answer to Question #92355 in Macroeconomics for Sidney Mfisa

Question

Briefly explain the concept “monetary policy transmission mechanism” and then illustrate how
changes in interest rates affects any business organisation of your choice. Substantiate your
answer fully.
N.B: 15 marks for the monetary policy transmission mechanism and 10 marks for the effects
on business. On the application to business, you are expected to give a brief background of
the business, the sector it operates, location etc, and then discuss the effects.

Answer 1

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