Which of the following statements would John Maynard Keynes most likely agree with?
a. “All income generated from output is used to buy goods and services.”
b. “Supply automatically creates adequate demand.”
c. “Income is always spent in the period that it is produced.”
d. “A decline in investment leads to insufficient total spending.”
d. “A decline in investment leads to insufficient total spending.”
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Refer to the figure above. Social welfare will be maximized if ________ units of Good Y are produced
A) 9 million B) 20 million C) 13 million D) 16 million
The Sherman Antitrust Act was passed in
a. 1836. b. 1890. c. 1914. d. 1946.
When the money market is drawn with the value of money on the vertical axis, long-run equilibrium is obtained when the quantity demanded and quantity supplied of money are equal due to adjustments in
a. the value of money. b. real interest rates. c. nominal interest rates. d. the money supply.
You are given the following information: Reserves (R) in the banking system amount to $48 billion, of which $45.8 billion are required. Currency in the hands of the public amounts to $692.5 billion while checkable deposits amount to $650 billion. Calculate the money multiplier.
What will be an ideal response?