The Keynesian transmission mechanism for monetary policy asserts that changes in the money supply
A) affect real interest rates, which affect the level of aggregate demand.
B) affect real interest rates, which affect the level of aggregate supply.
C) affect the price level, which affects the level of aggregate demand.
D) affect the price level, which affects the level of aggregate supply.
E) affect the price level, which affects the IS curve.
Correct Answer:
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