The interest-rate-based monetary policy transmission mechanism suggests that the changes in the money supply affect aggregate spending

A. directly through interest rates and planned consumption spending.
B. indirectly through tax rates and planned consumption spending.
C. directly through interest rates and planned government spending.
D. indirectly through interest rates and planned investment spending.


Answer: D

Economics

You might also like to view...

As technology advances,

A) all opportunity costs decrease. B) the PPF shifts outward. C) a country moves toward the midpoint along its PPF and can produce more of both goods. D) all opportunity costs increase. E) the PPF shifts inward because unemployment occurs.

Economics

According to opportunity-cost theory, the cost to an airline of letting its employees fly at no charge

A) depends upon the alternatives available to the employees. B) is greater around the Christmas holidays. C) is zero. D) will depend upon the value employees place upon travel.

Economics

The average unemployment rate was lowest during what period?

A) 1980-1990 B) 1950-1970 C) 2000-2010 D) 1980-2000

Economics

Explain how a firm can have constant returns to scale in production and economies of scale in cost

What will be an ideal response?

Economics