According to the Keynesian Transmission Mechanism,an Increase in the Money

question 102

Multiple Choice

According to the Keynesian transmission mechanism,an increase in the money supply will __________ the interest rate,causing a __________ in investment,which then __________ Real GDP.

• A) raise; fall; raises
• B) raise; rise; lowers
• C) raise; fall; lowers
• D) lower; fall; lowers
• E) lower; rise; raises

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