The Keynesians offer a different view of the quantity theory of money from the classical economists and monetarists in that they
a. accept the idea that V is stable and predictable
b. believe a price increase may lead to an increase in money velocity
c. believe Q always reflects full-employment GDP
d. believe that changes in the supply of money never affect P or Q
e. believe that an increase in the money supply can lower real GDP because the economy is always at full employment
B
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Refer to Figure 6-10. A perfectly inelastic supply curve is shown in
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
If the fractional reserve system did not exist,
a. the banking system could not create money b. the money multiplier would be infinite c. banks would loan out every penny of their deposits d. banks would be highly susceptible to bank runs e. the banking system would realize maximum profit
Does a change in the price in a market result in a shift of the demand curve or in a movement along the demand curve?
The ability to produce a good at a lower opportunity cost than others is called a(n) __________ advantage
A) complementary B) comparative C) natural D) indigenous