The money supply increased, and the AD curve did not shift to the right. This is consistent with the:
a) monetarist transmission mechanism when there is a liquidity trap.
b) Keynesian transmission mechanism when there is a liquidity trap.
c) monetarist transmission mechanism when there is interest-insensitive investment.
d) Keynesian transmission mechanism when there is either a liquidity trap or interest-insensitive investment.
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The money supply increased, and the AD curve did not shift to the right. This is consistent with the...
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