Answer to Question #218349 in Economics for Andie

Question

4.1     The monetary policy transmission mechanism shows the relationship between                    .

[1]         the interest rate and spending by firms

[2]     the interest rate and spending by government and households

[3]         the total income and investment expenditure

[4]     the price level and total production

Answer 1

[2]     the interest rate and spending by government and households