The monetary transmission mechanism that assumes that money ...

[nelaaney]

The monetary transmission mechanism that assumes that money supply growth stimulates the economy primarily by encouraging investment is
 
  A) the classical transmission mechanism.
  B) pre-Keynesian transmission mechanism.
  C) the interest-rate-based transmission mechanism.
  D) the post-Keynesian transmission mechanism.

Question 2

If there is a change in the federal funds rate from a target rate due to an increase in the demand for reserves, the Fed can maintain the target by:
 
  A) causing an upward movement along the supply of reserves curve.
  B) causing the supply curve of reserves to shift to the left.
  C) causing a downward movement along the supply of reserves curve.
  D) causing the supply curve of reserves to shift to the right.

[mrphibs]

Answer to Question 1

C

Answer to Question 2

D