The Keynesian Transmission Mechanism Might Get Blocked If

question 42

Multiple Choice

The Keynesian transmission mechanism might get blocked if

• A) investment is insensitive to changes in interest rates.
• B) the goods market is not in equilibrium.
• C) the money supply increases too quickly.
• D) interest rates are too high before they fall.

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A legal agreement between a supplier and a buyer that outlines the terms and conditions regarding the sale and delivery of goods or services.

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The refusal to fulfill or discharge an agreement, obligation, or contract.