Monetarists assert that monetary policy may affect aggregate demand through
A)only an interest rate channel.
B)only an exchange rate channel.
C)only two channels: interest rates and exchange rates.
D)many channels.

Question

Quizplus · Accepted Answer

Monetarists believe that monetary policy can affect aggregate demand through multiple channels, including interest rates, exchange rates, credit availability, and inflation expectations. The exact effectiveness of each channel may vary depending on the specific economic conditions and the policy implementation.

Monetarists Assert That Monetary Policy May Affect Aggregate Demand Through