Multiple Choice
According to the Keynesian transmission mechanism (and assuming there is no liquidity trap and investment is not interest insensitive) ,if the money supply increases,the interest rate __________,investment spending __________ and the AD curve shifts to the __________.
A) falls; falls; left
B) rises; rises; right
C) falls; rises; left
D) falls; rises; right
E) rises; falls; right
Correct Answer:
Verified
Correct Answer:
Verified
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