Compared to the Keynesian Transmission Mechanism,the Monetarist Transmission Mechanism Is

question 5

Multiple Choice

Compared to the Keynesian transmission mechanism,the monetarist transmission mechanism is

• A) indirect and long.
• B) direct and long.
• C) direct and short.
• D) indirect and short.

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Definitions:

Semiannually

Occurring twice a year; every six months.

Zero-coupon Bond

A type of bond that does not pay interest during its life; it is sold at a discount from its face value and the return is realized when the bond matures.

Deep Discount

A situation where a bond or other investment is sold significantly below its par or face value.

Yield To Maturity

The total return expected on a bond if it is held until its maturity date, including all interest payments and capital gains or losses.