The Monetarist Transmission Mechanism Through Which Monetary Policy Affects the Price

question 1

Multiple Choice

The Monetarist transmission mechanism through which monetary policy affects the price level, real GDP, and employment depends on the:

• A) indirect impact of changes on the interest rate.
• B) indirect impact of changes on profit expectations.
• C) direct impact of changes in fiscal policy on aggregate demand.
• D) direct impact of changes in the money supply on aggregate demand.

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