The assumption that people may choose to hold excess money balances when there is an increase in the money supply is emphasized by
A) supply-side economists.
B) Monetarists.
C) Keynesians.
D) rational expectations theorists.
C
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Assuming all else equal, if a bank expects a bank run in the future:
A) there will be an upward movement along its demand curve for reserves. B) its demand curve for reserves will shift to the left. C) there will be a downward movement along its demand curve for reserves. D) its demand curve for reserves will shift to the right.
From the economic point of view, profit is
A) a four-letter word. B) the same as loss. C) the result of uncertainty. D) a sign of economic injustice. E) none of the above.
Refer to the Article Summary. What happens to the profit a car company makes on each car sold if it offers incentives such as discounts, cash rebates, or lease incentives to customers? How might a car company decide which of these strategies to use
What will be an ideal response?
If there is a deliberate change in taxes and spending, it is called
A) a recessionary gap. B) an inflationary gap. C) discretionary fiscal policy. D) discretionary monetary policy.