While the classical economists believe that the only demand for money is the transactions demand, the Keynesians believe that there is also a
a. precautionary demand and a speculative demand for money
b. precautionary demand and a velocity demand for money
c. speculative demand and a velocity demand for money
d. speculative demand and a quantity demand for money
e. precautionary demand and a spending demand for money
A
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Before it became illegal, cigarette manufacturers once relied heavily on TV advertising. According to the textbook, when the government banned TV advertising, the cigarette manufacturers:
A. were made worse off because the ban significantly reduced cigarette sales. B. thought their First Amendment rights were being violated. C. supported the ban due to their concern over health effects of smoking. D. benefited because the decision about whether to advertise on TV was a prisoner's dilemma.
Stimulating demand will improve the unemployment picture but
A. worsen inflation. B. decrease inflation. C. have no impact on inflation. D. None of the above is correct.
In the early 1900s,
a. federal and state governments typically supported management and opposed labor unions. b. "government by injunction" was a strong weapon for combating strikes. c. using troops to break strikes was considered a legitimate use of police power. d. the Supreme Court upheld employers' use of antiunion contracts. e. All of the above.
Other things equal, when the supply of workers is low, one would predict that market wages would be
a. relatively high. b. relatively low. c. determined solely by factors that affect demand. d. determined outside the domain of economic theory.