The Monetary Transmission Mechanism That Assumes That Money Supply Growth

question 311

Multiple Choice

The monetary transmission mechanism that assumes that money supply growth stimulates the economy primarily by encouraging investment is

• A) the interest-rate-based transmission mechanism.
• B) the classical transmission mechanism.
• C) the post-Keynesian transmission mechanism.
• D) pre-Keynesian transmission mechanism.

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Definitions:

Ten Thousand Years

A long-duration reference, often used to signify a vast amount of time, in various scientific or historical contexts.

Birth of Christ

is a religious and historical event commemorated by Christians as the nativity of Jesus, traditionally celebrated on December 25th as Christmas.

Malthusian Trap

A situation where population growth outpaces agricultural production, leading to famine, disease, and war.

Poor

Refers to the state of having insufficient financial resources or wealth.