Monetarists Contend That

question 82

Multiple Choice

Monetarists contend that

• A)monetary policy affects aggregate demand solely through investment.
• B)monetary policy may affect aggregate demand through many channels.
• C)a weak link between nominal interest rates and investment spending implies monetary policy ineffectiveness.
• D)monetary policy affects aggregate demand solely through consumption.

---

Definitions:

Structural Units

Basic components or building blocks that make up a structure, system, or complex entity.

Mental Elements

Fundamental components or aspects that make up the processes of the mind, such as thoughts, feelings, and attitudes.

Sentiments

Complex feelings that arise from attitudes, beliefs, and judgments, which influence how individuals perceive and interact with others.

Attitudes

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.