Keynesians argue that the stabilizing effects of a fall in investment and the resulting decline in the price level assumed by the monetarists
A) will not happen because the price level will actually rise.
B) will happen.
C) is not likely to happen because the price level rarely ever falls.
D) may or may not happen depending on what happens to interest rates.
C
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Suppose that in a free market, 2,000 patients purchase an operation to receive an artificial heart at a price of $500,000 per operation. Without the heart, each patient will die. The government decides this price is too high and imposes a maximum price of $200,000. Everything else equal,
A. more patients will now die. B. fewer patients will now die. C. more patients will now die only if the demand curve is vertical. D. more patients will now die only if the demand curve is horizontal.
Which of the following is true?
i. Production efficiency occurs only when resources are used to produce the combination of goods that has the greatest value. ii. Allocative efficiency occurs when marginal benefit equals marginal cost. iii. A demand curve is a marginal cost curve. A) only ii B) only i C) only iii D) i and ii E) ii and iii
Intraindustry trade is characterized by what two features?
What will be an ideal response?
If consumers desire choice
A) network effects with be minimized. B) network effects are enhanced. C) networks shift back to a previous technology. D) government will regulate variety.