According to Keynes, an increase of the money supply given some expectations wil

Question

According to Keynes, an increase of the money supply given some expectations will result in: A- a small reduction in private investment and the real gdp B-a large reduction in private investment and the real gdp C-a moderate increase in private investment and the real gdp D- none of the above According to Keynes, an increase of the money supply given some expectations will result in: A- a small reduction in private investment and the real gdp B-a large reduction in private investment and the real gdp C-a moderate increase in private investment and the real gdp D- none of the above A- a small reduction in private investment and the real gdp B-a large reduction in private investment and the real gdp C-a moderate increase in private investment and the real gdp D- none of the above

Explanation / Answer

C-a moderram increase in private investment and real GDP. When supply of money increases , availablity of money with people increases and when people have money they will tend to invest the money so investments increases .when investment increases GDp also increases.  

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