Multiple Choice
According to Keynesians, for monetary policy to have a stimulative effect on GDP, a/an:
A) increase in the money supply is needed which lowers the interest rate in order to stimulate higher levels of investment.
B) increase in the money supply is needed which lowers the interest rate in order to lower levels of investment.
C) decrease in the money supply is needed which lowers the interest rate in order to stimulate higher levels of investment.
D) decrease in the money supply is needed which causes the interest rate to rise in order to stimulate higher levels of investment.
Correct Answer:
Verified
Correct Answer:
Verified
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