The role of monetary policy on the cyclical behavior of the labor share and capacity utilization in the US economy is studied empirically. Previous estimation results remain robust; the inclusion of the rate of interest does not alter the underlying specification of the distributive demand regime. Next, the role of monetary policy on net borrowing flows for four institutional sectors are analyzed. Interest rate effects appear most important for households. Based on this finding, implications for countercyclical stabilization policy are spelled out. (author's abstract)