According to the domestic monetary transmission mechanism, more money causes A. higher interest rates which increase the cost of borrowing and increase consumption and investment spending. B. lower interest rates which increase the cost of borrowing and decrease consumption and investment spending. C. lower interest rates which decrease the cost of borrowing and decrease consumption and investment spending D. a positive aggregate demand shock, increased real GDP, decreased unemployment, and rising average prices.
According to the domestic monetary transmission mechanism, more money causes A. higher interest rates which increase the cost of borrowing and increase consumption and investment spending. B. lower interest rates which increase the cost of borrowing and decrease consumption and investment spending. C. lower interest rates which decrease the cost of borrowing and decrease consumption and investment spending D. a positive aggregate demand shock, increased real GDP, decreased unemployment, and rising average prices.