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Consider the Monetary Transmission Mechanism

Question 131

Multiple Choice

Consider the monetary transmission mechanism.If the Bank of Canada were to increase the money supply,we would expect a large increase in aggregate demand if the money demand function


A) and the investment demand function are relatively flat.
B) and the investment demand function are relatively steep.
C) is relatively flat and the investment demand function is relatively steep.
D) is relatively steep and the investment demand function is relatively flat.
E) remains the same and the investment demand function is steep.

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