8)Which of the following monetary transmission mechanisms is correct for expansionary monetary policy? a.The central bank sells
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8)Which of the following monetary transmission mechanisms is correct for expansionary monetary policy?
a.The central bank sells bonds, the interest rate falls, aggregate demand shifts right and GDP increases.
b.The central bank sells bonds, the interest rate rises, aggregate demand shifts right and GDP increases.
c.The central bank buys bonds, the interest rate rises, aggregate demand shifts left and GDP decreases.
D. The central bank buys bonds, the interest rate falls, aggregate demand shifts right and GDP increases.
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