Consider the Monetary Transmission Mechanism

question 18

Multiple Choice

Consider the monetary transmission mechanism.A disturbance to monetary equilibrium which changes the interest rate will affect aggregate demand through

• A)a shift of the investment demand function and a movement along the aggregate expenditure curve.
• B)a movement along the investment demand function and a shift of the aggregate expenditure curve.
• C)a shift of both the investment demand function and the aggregate expenditure curve.
• D)movements along the investment demand function and the aggregate expenditure curve.
• E)a movement along the aggregate expenditure curve.

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