Question

The Transmission Mechanism process follow different stages: A. Change in real money supply, B. Spending adjusts to change in interest rate, C. Portfolio adjustment, D. Output adjusts to the change in aggregate demand, E. Change in asset price and interest rate.

• A. A, B, C, D, E
• B. A, C, E, B, D
• C. B, C, A, E, D
• D. E, B, C, D, A

Hint:

Monetary transmission works through money supply, portfolio adjustment, interest rate changes, spending changes, and output adjustment.

Answer 1

The Correct Option is B