The Keynesian Transmission Mechanism for Monetary Policy Asserts That Changes

question 10

Multiple Choice

The Keynesian transmission mechanism for monetary policy asserts that changes in the money supply

• A) affect real interest rates, which affect the level of aggregate demand.
• B) affect real interest rates, which affect the level of aggregate supply.
• C) affect the price level, which affects the level of aggregate demand.
• D) affect the price level, which affects the level of aggregate supply.
• E) affect the price level, which affects the IS curve.

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