Question Type: MCQ

Question No$.7.$ Mark$/$s: $1\mathrm{.}00|$ Negative Mark$/$s: $0\mathrm{.}00$

When interest rate is increased, there is an increase in income from interest on savings deposits which makes people spend more. This channel of monetary policy transmission is called:

Asset price channel

Savings$-$investment channel.

Wealth Channel

Cash flow channel.