The interest-rate-based approach to the monetary policy transmission mechanism says that a change in the money supply influences aggregate demand by
A. changing consumer consumption behavior as they adjust to a change in the number of dollars available.
B. leading to shifts of the short-run aggregate supply curve.
C. a change in interest rates, which changes the money supply.
D. a change in interest rates, which changes investment.
Answer: D
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a. True b. False Indicate whether the statement is true or false
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