Use the following diagram to answer the next question. Based on this diagram, we can say _____. rev: 06_20_2018

Multiple Choice: A. an increase in the money supply will have little effect on investment or aggregate demand

B. expansionary monetary policy will be more effective at increasing aggregate supply than aggregate demand

C. monetary policy is likely to be more effective at fighting a recession than fiscal policy

D. investment demand is very sensitive to changes in the interest rate