Monetarists have argued that since velocity __________, this shows that shifts to the investment demand function must __________
A) is rather stable; cause the private economy to be unstable
B) is rather stable; be offset by interest rate changes
C) moves counter-cyclically; cause the private economy to be unstable
D) moves counter-cyclically; be offset by interest rate changes
A
You might also like to view...
Which of the following is true?
A) The real interest rate can never be zero. B) The nominal interest rate is usually negative. C) The real interest rate is always positive. D) The nominal interest rate is usually less than the real interest rate. E) The real interest rate can be negative.
If the general education level within a country rises significantly over time, it is likely that:
a. the country will move to a different point along its current production possibilities curve. b. the country's production possibilities curve will not change in any way. c. the country's production possibilities curve will shift in. d. the country's production possibilities curve will shift out. e. the country's production possibilities curve will become convex to the origin.
An insured person's incentive to behave in ways that raise the probability of a claim is known as:
a. a moral hazard. b. the lemons problem. c. the problem of adverse selection. d. the problem of advantageous selection.
If the economy is already producing its potential output, then, in the long run, any change in fiscal policy aimed at stimulating demand will simply increase the price level and have no impact on the output level in the economy
Indicate whether the statement is true or false