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Which of the Following Statements Is True

Question 77

Multiple Choice

Which of the following statements is true?


A) In the monetarist transmission mechanism,changes in the money market directly affect aggregate demand.
B) In the monetarist transmission mechanism,there is no need for the money market to affect the loanable funds market or investment before aggregate demand is affected.
C) In the monetarist transmission mechanism,if individuals are faced with an excess supply of money,they spend that money on a wide variety of goods---not just bonds or other assets,as is the case in the Keynesian transmission mechanism.
D) a and b
E) a,b and c

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