ANSWER TRUE, FALSE or UNCERTAIN. PLEASE EXPLAIN YOUR RESPONSE TO EARN FULL MARKS A. The simple money multiplier always understates the true money multiplier B. In the inflation targeting framework, demand side shocks lead to more output stability. C. According to Friedman's modern quantity theory, money is considered as a medium of exchange only. D. In the Baumol-Tobin's transaction demand for money, an increase in transactions costs will lead to a fall in money demand. E. In the interest rate Channel of monetary policy, monetary policy shocks are transmitted to the real world via the exchange rate. F. According to Irving Fisher, MV=Y where Y is income, V is velocity (measured in kilometers per hour) and Y is income G. According to the interest rate channel of monetary policy transmission, monetary policy is transmitted to the real sector via exchange rates.