Keynesian monetary theory:
a) is the same as the classical theory in all essential elements.
b) states that changes in the money supply have no impact on GDP in either the short or long run.
c) states that an increase in the money supply leads to lower interest rates, which stimulates investment and aggregate demand.
d) states that an increase in the money supply will lower interest rates and thereby shift the long-run aggregate supply curve to the right.
Ans: c) states that an increase in the money supply leads to lower interest rates, which stimulates investment and aggregate demand.
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The pattern of colonialization adopted by European countries was:
A) based on communal grounds. B) basically welfare driven. C) basically profit driven. D) pro-natives in all nations.
In the Keynesian model, liquidity preference refers to the
A) demand for capital. B) demand for consumer goods. C) demand for money. D) money supply.
If the price of an item can freely adjust, a market will
A) always move towards equilibrium. B) always have an excess quantity demanded. C) always have an excess quantity supplied. D) never move towards equilibrium because prices are always increasing.
To keep employees from shirking, you can invest in greater monitoring
a. because monitoring is inexpensive b. especially when monitoring is not very efficient c. when employees respond well to incentive contracts d. when incentives solve both moral hazard and adverse selection problems with employees