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Part B: Answer the following questions(Use graphs where applicable) - 4 mark: Q1: What is the Monetary policy transmission mechanism? Graphically explain the Keynesian Transmission

Part B: Answer the following questions(Use graphs where applicable) - 4 mark:

Q1: What is the Monetary policy transmission mechanism? Graphically explain the Keynesian Transmission Mechanism for increasing the money supply. What are the two cases that Keynesian Transmission Mechanism does not produce any change in the real GDP due to increase in the money supply? Explain with appropriate graphs.

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