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Consider the Monetary Transmission Mechanism

Question 100

Multiple Choice

Consider the monetary transmission mechanism.A decrease in the money supply is most likely to


A) raise interest rates,investment,and aggregate expenditures.
B) raise interest rates,lower investment,and lower aggregate expenditures.
C) lower interest rates,raise investment,and raise aggregate expenditures.
D) lower interest rates,investment,and aggregate expenditures.
E) raise interest rates and investment,and lower aggregate expenditures.

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