If the money supply increases this will cause the interest rate to rise, investment to fall and GDP to fall.
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Q105: Contrast the Keynesian and Monetarist views on
Q231: According to Keynesian theory, changes in the
Q232: The transmission mechanism is the effect of
Q233: The transmission mechanism is the effect of
Q234: Investment is lowered by expansionary monetary policy.
Q235: If M stand for the money supply,
Q237: The Monetarists advocate the monetary rule in
Q238: The Keynesian viewpoint is that the investment
Q239: A rightward shift in the money supply
Q240: If the investment curve is relatively vertical,
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