In the Keynesian Transmission Mechanism,if Investment Is Completely Interest-Insensitive,then an Increase

question 139

Multiple Choice

In the Keynesian transmission mechanism,if investment is completely interest-insensitive,then an increase in the money supply will

• A) cause total expenditures and aggregate demand to increase.
• B) cause total expenditures and aggregate demand to decrease.
• C) have no impact on total expenditures and aggregate demand.
• D) cause total expenditures to increase and aggregate demand to decrease.
• E) cause total expenditures to decrease and aggregate demand to increase.

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