The linkage between changes in monetary equilibrium and changes in aggregate demand is called the

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The linkage between changes in monetary equilibrium (e.g. changes in the money supply or interest rates) and changes in aggregate demand is known as the monetary transmission mechanism. This is the process by which monetary policy decisions affect the real economy through changes in interest rates, credit availability, and general financial conditions. The other options (A, C, D, and E) do not accurately describe this linkage.

The Linkage Between Changes in Monetary Equilibrium and Changes in Aggregate