Consider the Monetary Transmission Mechanism

Consider the monetary transmission mechanism. A relatively steep investment demand curve and a relatively flat money demand curve

A) are believed by many monetarists to be realistic descriptions of the economy.
B) make the money supply a particularly powerful policy instrument.
C) imply that large increases in the money supply have little effect on aggregate expenditure.
D) increase the effectiveness of expansionary monetary policy.
E) make it impossible for the Bank of Canada to change the money supply.