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Keynesians Argue That for a Change in the Money Supply

Question 41

Multiple Choice

Keynesians argue that for a change in the money supply (with constant prices) ,the mechanism through which aggregate demand changes is


A) change in the money supply → change in speculative balances → change in transactions balances → change in planned investment → change in aggregate demand.
B) change in the money supply → change in planned investment → change in government spending → change in aggregate demand.
C) change in the money supply → change in interest rates → change in planned investment → change in aggregate demand.
D) change in the money supply → change in interest rates → change in transactions balances → change in government spending → change in aggregate demand.

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