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Question
According to traditional Keynesians, monetary policy is ineffective in affecting the economy during a recession because
A) an increase in the money supply will have little impact on interest rates.
B) an increase in the money supply will only lead to higher interest rates.
C) an increase in the money supply will only lead to lower investment spending.
D) an increase in the money supply will raise the amount of government debt.
Answer
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Why?
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