Adjust the graph to show the short-run effect of the contractionary monetary policy. PRICE LEVEL 210 175 140 105 70 35 0 0 SRAS 2 3 REAL GDP (Trillions of dollars) AD 5 6 þ AD SRAS ? Compare monetarist and Keynesian views regarding the monetary policy transmission mechanism, and select the multiple-choice option that best describes the following statement. "The effectiveness of monetary policy depends primarily on how monetary policy influences interest rates." O Monetarists agree with this statement, but Keynesians do not. O Monetarists and Keynesians agree with this statement. O Keynesians agree with this statement, but monetarists do not. O Neither monetarists nor Keynesians agree with this statement.

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