Monetarists and classical economists:
a. assume that stimulative monetary policy will create high levels of GDP without inflation.
b. assume that stimulative monetary policy will create high levels of GDP and slightly high prices.
c. assume the economy operates at full employment and stimulative monetary policy will only cause the price level to rise.
d. assume that the economy operates at full employment and stimulative monetary policy will increase both aggregate supply and aggregate demand.
e. assume that the Keynesian description of monetary policy underestimates the true stimulative effect of an increase in the money supply.
c
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There are two major Internet service providers in Eduland. One company has a market share of 60% and the other firm has a market share of 40%. The Herfindahl-Hirschman Index for this industry is ________
A) 100,000 B) 1,200 C) 5,200 D) 100
Comparative advantage indicates that:
a. specialization and exchange will permit trading partners to maximize their joint consumption. b. a nation can gain from trade only if it is not at an absolute disadvantage in producing all goods. c. a nation can gain from trade only when its trading partners are not low-wage countries. d. countries should export products for which they are high-opportunity cost producers.
The productivity growth rates of poorer countries tend to be ____ than those of richer countries.
A. higher B. lower C. increasing slower D. decreasing faster
All of the following are consequences of a government's having to deal with a "debt crisis", except:
A. Very restricted ability to borrow money B. Being forced to drastically raise taxes C. Being forced to make drastic cuts in spending D. Being forced to make huge increases in government spending