The Interest-Rate-Based Approach to the Monetary Policy Transmission Mechanism Says

Multiple Choice

The interest-rate-based approach to the monetary policy transmission mechanism says that a change in the money supply influences aggregate demand by

A) a change in interest rates, which changes investment.
B) a change in interest rates, which changes the money supply.
C) changing consumer consumption behavior as they adjust to a change in the number of dollars available.
D) leading to shifts of the short-run aggregate supply curve.