The diagram shows how the monetary transmission mechanism works after an expansionary central bank intervention (quantitative easing). Several stages in the process have been left out. central bank ......1...... government assets ↓ short-term interest rates ......2...... ↓ investment demand ......3...... ↓ real GDP increases Which words fill gaps 1, 2 and 3?
- Abuys; fall; rises
- Bbuys; rise; falls
- Csells; fall; rises
- Dsells; rise; falls