Answer to Question #222698 in Economics for Chumile Samson

Question

1. The monetary transmission mechanism can be illustrated and explained using three diagrams showing the link between __________.
2. [1] interest rate, prices and wages
3. [2] consumption spending, interest rate and total production
4. [3] interest rate, investment spending, aggregate spending and total income
5. [4] investment spending, prices and wages, and aggregate demand 

Answer 1

[2] consumption spending, interest rate, and total production