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According to the Interest-Rate-Based Perspective on the Monetary Policy Transmission

Question 282

Multiple Choice

According to the interest-rate-based perspective on the monetary policy transmission mechanism


A) key channels of monetary policy indirectly ultimately relate money supply changes to total planned spending through indirect effects on planned investment.
B) changes in the money supply have little influence on macroeconomic variables.
C) monetary policy leads to increases in the price level but will have no effect on the rate of output.
D) inflation is always caused by excessive monetary growth and changes in the money supply offset aggregate demand only directly.

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