Which of the Following Statements Is True

question 77

Multiple Choice

Which of the following statements is true?

• A) In the monetarist transmission mechanism,changes in the money market directly affect aggregate demand.
• B) In the monetarist transmission mechanism,there is no need for the money market to affect the loanable funds market or investment before aggregate demand is affected.
• C) In the monetarist transmission mechanism,if individuals are faced with an excess supply of money,they spend that money on a wide variety of goods---not just bonds or other assets,as is the case in the Keynesian transmission mechanism.
• D) a and b
• E) a,b and c

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