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:

Phi Phenomenon

The optical illusion of perceiving continuous motion between separate objects viewed rapidly in succession.

Motion Parallax

A depth cue based on the relative velocities of objects moving across the observer's field of vision, implying perception of motion and depth.

Gestalt Principle

A theory in psychology that proposes the human brain organizes visual elements into groups or unified wholes when certain principles are applied, such as similarity, proximity, and continuity.

Continuity

Continuity refers to the consistent existence or operation of something over a period of time, indicating stability and lack of interruption.