According to the Interest-Rate-Based Perspective on the Monetary Policy Transmission

question 1

Multiple Choice

According to the interest-rate-based perspective on the monetary policy transmission mechanism

• A) key channels of monetary policy indirectly ultimately relate money supply changes to total planned spending through indirect effects on planned investment.
• B) changes in the money supply have little influence on macroeconomic variables.
• C) monetary policy leads to increases in the price level but will have no effect on the rate of output.
• D) inflation is always caused by excessive monetary growth and changes in the money supply offset aggregate demand only directly.

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