Answer to Question #218351 in Economics for Andie

Question

4.1     Which one of the following chain of events best represents the monetary transmission mechanism?

[1]     ∆𝑃 → ∆𝑖 → ∆𝐴 → ∆𝑌

[2]     ∆𝐺 → ∆𝐴 → ∆𝑌

[3]     ∆𝑖 → ∆𝐼 → ∆𝐴 → ∆𝐴𝐷 → ∆𝑌

[4]     ∆𝑖 → ∆𝐼 → ∆𝐴 → ∆𝐴𝑆 → ∆𝑌

Answer 1

3]     ∆𝑖 → ∆𝐼 → ∆𝐴 → ∆𝐴𝐷 → ∆𝑌