Which of the Following Statements Is True

question 77

Multiple Choice

Which of the following statements is true?

• A) In the monetarist transmission mechanism,changes in the money market directly affect aggregate demand.
• B) In the monetarist transmission mechanism,there is no need for the money market to affect the loanable funds market or investment before aggregate demand is affected.
• C) In the monetarist transmission mechanism,if individuals are faced with an excess supply of money,they spend that money on a wide variety of goods---not just bonds or other assets,as is the case in the Keynesian transmission mechanism.
• D) a and b
• E) a,b and c

---

Definitions:

Straw Man Fallacy

An opponent’s argument is distorted or misrepresented in order to make it easier to refute.

Equivocation

A key term in an argument changes meaning during the course of the argument.

Snob Appeal

An advertising strategy that attempts to make the audience feel that a product or service will elevate their status or prestige.

Approval Rating

A measure of public support or satisfaction with a person or policy, often expressed as a percentage.