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

question 102

Multiple Choice

According to the Keynesian transmission mechanism,an increase in the money supply will __________ the interest rate,causing a __________ in investment,which then __________ Real GDP.

• A) raise; fall; raises
• B) raise; rise; lowers
• C) raise; fall; lowers
• D) lower; fall; lowers
• E) lower; rise; raises

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Definitions:

Forbidden Impulse

A desire or thought that is repressed or deemed unacceptable by societal standards or personal conscience, often explored in psychoanalytic theories.

Displacement

A redirection of an impulse from a channel that is blocked into another, more available outlet.

Psychosexual Stages

A theory proposed by Freud describing how personality develops through five stages (oral, anal, phallic, latency, genital) centered on erogenous zones.

Phallic

Relating to or resembling the penis, often used in the context of Freudian psychoanalysis to describe a stage of human development.