Keynesian Theory Argues That

Multiple Choice

Keynesian theory argues that

A) increases in the money supply lead to decreases in the interest rate which decreases investment which decreases the level of real GDP.
B) decreases in the money supply lead to increases in the interest rate which increases investment which increases the level of real GDP.
C) increases in the money supply cause consumers to spend more which reduces the unemployment rate and therefore increases real GDP.
D) increases in the money supply lead to decreases in the interest rate which increases investment which increases the level of real GDP.