Which of the following statements is true?
A) In the monetarist transmission mechanism,changes in the money market directly affect aggregate demand.
B) In the monetarist transmission mechanism,there is no need for the money market to affect the loanable funds market or investment before aggregate demand is affected.
C) In the monetarist transmission mechanism,if individuals are faced with an excess supply of money,they spend that money on a wide variety of goods---not just bonds or other assets,as is the case in the Keynesian transmission mechanism.
D) a and b
E) a,b and c

Question

Quizplus · Accepted Answer

The monetarist transmission mechanism posits that changes in the money supply directly influence aggregate demand without necessarily impacting the loanable funds market or investment first. Additionally, it suggests that an excess supply of money leads individuals to spend more broadly across various goods and services, not just on bonds or assets as in the Keynesian perspective.

Which of the Following Statements Is True