Monetarists Assert That Monetary Policy May Affect Aggregate Demand Through

question 5

Multiple Choice

Monetarists assert that monetary policy may affect aggregate demand through

• A)only an interest rate channel.
• B)only an exchange rate channel.
• C)only two channels: interest rates and exchange rates.
• D)many channels.

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Definitions:

Ability

The possession of the means or skill to do something.

Benevolence

The quality of being well-meaning; kindness and generosity towards others.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

I-P-O Model

Input-Process-Output Model, a framework used to understand how teams or systems transform inputs into outputs.