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    Exam 25: Transmission Mechanisms of Monetary Policy
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    The Monetary Transmission Mechanism That Links Monetary Policy to GDP
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The Monetary Transmission Mechanism That Links Monetary Policy to GDP

Question 11

Question 11

Multiple Choice

The monetary transmission mechanism that links monetary policy to GDP through real interest rates and investment spending is called the


A) traditional interest-rate channel.
B) Tobins' q theory.
C) wealth effects.
D) cash flow channel.

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