According to the Keynesian Transmission Mechanism,an Increase in the Money

question 148

Multiple Choice

According to the Keynesian transmission mechanism,an increase in the money supply causes a(n) __________ in the interest rate and a(n) __________ in investment,which in turn causes a(n) __________ in total expenditures and aggregate demand.

• A) increase; decrease; decrease
• B) increase; increase; decrease
• C) decrease; increase; increase
• D) decrease; decrease; increase

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