Question 13 2 points Saved monetary policy transmission mechanism, an increase i

Question

Question 13 2 points Saved monetary policy transmission mechanism, an increase in the money supply generates O lower interest rates, which causes an increase in planned real investment spending and an increase in aggregate demand. spending on consumer goods and services directly, which causes an increase in aggregate demand. O an increase in nominal GDP and a change in the price level, but no change in real GDP. an increase in aggregate supply since the supply of money is part of aggregate supply.

Explanation / Answer

Answer
Option first
the increased money supply increases investment because the investment is cheaper and that shifts AD to right and the real GDP increases.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.