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For this question, assume that investment spending depends only on output and no longer depends on ...

For this question, assume that investment spending depends only on output and no longer depends on the interest rate. Given this information, an increase in the money supply
A) will cause investment to decrease.
B) will cause investment to increase.
C) will cause a reduction in the interest rate.
D) will have no effect on output or the interest rate.
E) will cause an increase in output and have no effect on the interest rate.

Textbook

Macroeconomics

Edition: 6^th

Authors: Blanchard, Johnson

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