Early Keynesians believed that monetary policy ________.
A) affected aggregate demand solely through its effect on nominal interest rates
B) did not affect aggregate demand through nominal interest rates
C) affected aggregate demand through many channels
D) affected real output directly

Question

Quizplus · Accepted Answer

Early Keynesians believed that monetary policy influenced aggregate demand primarily through its impact on nominal interest rates, which in turn affected investment and consumption.

Early Keynesians Believed That Monetary Policy ________