According to the Interest-Rate-Based Monetary Policy Transmission Mechanism, an Increase

Multiple Choice

According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply will

A) lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending.
B) lead to a decrease in investment spending and an increase in real GDP which is greater than the decrease in investment spending.
C) lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending.
D) lead to an increase in investment spending and an increase in real GDP which is greater than the increase in investment spending.