The Interest-Rate-Based Approach to Monetary Policy Says That a Change

question 30

Multiple Choice

The interest-rate-based approach to monetary policy says that a change in the money supply influences aggregate demand by

• A) a change in interest rates which changes investment.
• B) following the monetary rule.
• C) changing consumer consumption behavior as they adjust to a change in the number of dollars available.
• D) leading to shifts of the short-run aggregate supply curve.

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