According to Keynesians, for Monetary Policy to Have a Stimulative

Multiple Choice

According to Keynesians, for monetary policy to have a stimulative effect on GDP, a(n) :

A) increase in the money supply lowers the interest rate in order to stimulate higher levels of investment.
B) increase in the money supply lowers the interest rate in order to lower levels of investment.
C) decrease in the money supply lowers interest rate in order to stimulate higher levels of investment
D) decrease in the money supply causes the interest rate to rise in order to stimulate higher levels of investment.
E) increase in the money supply causes the interest rate to rise in order to stimulate higher levels of investment.