QUESTION 3 3 P Which of the following will occur according to the Keynesian transmission mechanism if the money supply is increased and the money market is in a liquidity trap? Ca. None of the available answers are correct. O'b. The money supply curve will shift night but interest rates will remain the same so consumption and investment remain the same and the AD curve does not shill O'e. The money supply curve will shift right so interest rates will fall causing consumption and investment to Increase and the AD curve will shiftright @ a The money supply curve will shift left so interest rates will increase causing consumption and investment to decrease and the AD curve will shift left QUESTION 4 According to the Simple Quantity Theory of Money. what happens to Real GDP as the Money Supply Increases? A Real GOP decrease. O b. None of the available ariswere are correct Of Real GDP increases Od. Rag GOP remains constant