The Keynesian mechanism through which monetary policy affects the price level, real GDP, and employment depends on the impact of the:
A. interest rate on savings.
B. inflation on investment.
C. interest rate on investment.
D. interest rate on bond prices.
Answer: C
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Assume a consumption function of C = 90 + .75Y. The saving function for this economy is equal to
A) 90 + .25Y. B) -90 + .75Y. C) -90 + .25Y. D) 90 + .75Y.
When the U.S. economy expands, foreign investment in and immigration to the U.S. usually contracts
Indicate whether the statement is true or false
The table above shows the demand and total cost schedule for a monopolist hotel. What is the marginal revenue from renting out the fifth room each night?
A) $111 B) $141 C) $151 D) $161
If the demand curve for comic books is expressed as Q = 10,000/p, then demand has a unitary elasticity
A) only when p = 10,000. B) only when p = 100. C) always. D) never.