Multiple Choice
Given that M represents the money supply, i represents interest rates, I represents investment, AD represents aggregate demand, V represents the velocity of money, C represents consumption, P represents the price level, and Q represents the economy's real output level, Friedman's monetarist transmission mechanism can be represented by
A) M → (
i and/or
C) →
I →
AD →
Q and/or
P.
B) M →
i → (
I and/or
V) → AD →
Q and/or
P.
C) M →
V → (
I and/or
C) → AD →
Q and/or
P.
D) M →
i → (
I and/or
C) → AD →
Q and/or
P.
Correct Answer:

Verified
Correct Answer:
Verified
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