In which of the following economies do you think the bank lending channel would play a more

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In which of the following economies do you think the bank lending channel would play a more important role, everything else being equal:
 a) an economy dominated by large, financially sophisticated firms
 b) an economy consisting of a large number of small firms.
 Explain your choice. 

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Money Banking and Financial Markets

ISBN: 978-1259746741

5th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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