Given That M Represents the Money Supply, I Represents Interest

question 283

Multiple Choice

Given that M represents the money supply, i represents interest rates, I represents investment, AD represents aggregate demand, V represents the velocity of money, and Q represents the economy's real output level, Keynesian theory can be represented by

• A) M → i → I → AD → Q.
• B) M → i → I → AD → Q.
• C) M → V → I → AD → Q.
• D) M → i → V → AD → Q.

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