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In the Keynesian Transmission Mechanism,if Investment Is Completely Interest-Insensitive,then an Increase

Question 139

Multiple Choice

In the Keynesian transmission mechanism,if investment is completely interest-insensitive,then an increase in the money supply will


A) cause total expenditures and aggregate demand to increase.
B) cause total expenditures and aggregate demand to decrease.
C) have no impact on total expenditures and aggregate demand.
D) cause total expenditures to increase and aggregate demand to decrease.
E) cause total expenditures to decrease and aggregate demand to increase.

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