The money supply increased and the AD curve did not shift to the right.This is consistent with the
A) Keynesian transmission mechanism when there is either a liquidity trap or interest-insensitive investment.
B) monetarist transmission mechanism when there is interest-insensitive investment.
C) Keynesian transmission mechanism when there is a liquidity trap.
D) monetarist transmission mechanism when there is a liquidity trap.
E) c and d
Correct Answer:
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