Which of These Is a Keynesian View on Why Monetary

Multiple Choice

Which of these is a Keynesian view on why monetary policy could be ineffective?

A) If interest rates are extremely low, there is little incentive to save. In this case, expansionary monetary policy has little impact on investment spending.
B) Markets adjust so quickly to new equilibria that there is no change in output or price level.
C) While monetary policy is more effective than fiscal policy, policymakers are unable to control whether its impact is greater on prices or on output.
D) The crowding-out phenomena reduces the impact of monetary policy.