The money supply increased and the AD curve did not shift to the right. This is consistent with the
A) Keynesian transmission mechanism when there is either a liquidity trap or interest-insensitive investment.
B) monetarist transmission mechanism when there is interest-insensitive investment.
C) Keynesian transmission mechanism when there is a liquidity trap.
D) monetarist transmission mechanism when there is a liquidity trap.
E) c and d
A
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College education tends to result in a positive externality because the recipient receives the full benefit of the education
Indicate whether the statement is true or false
Which of the following fiscal policy actions would definitely cause a reduction in the size of an inflationary gap?
A) cuts in taxes and increases in government spending B) increases in government spending C) increases in taxes D) cuts in taxes
Rent controls can cause a. a decline in the quality of housing available for rent
b. the development of a black market to allocate apartments to renters. c. longer search times for renters attempting to locate an apartment. d. all of these are possible results of rent controls.
If checkable deposits rise, it follows that the
A) required reserve ratio will fall. B) dollar amount of reserves will rise. C) dollar amount of vault cash will rise. D) required reserve ratio will rise. E) none of the above