Keynesians are more likely to propose
A) contractionary monetary policy to eliminate an inflationary gap than expansionary monetary policy to eliminate a recessionary gap.
B) contractionary monetary policy to eliminate a recessionary gap than contractionary monetary policy to eliminate an inflationary gap.
C) expansionary monetary policy to eliminate a recessionary gap than contractionary monetary policy to eliminate an inflationary gap.
D) none of the above; instead, Keynesians are as likely to propose expansionary monetary policy to eliminate a recessionary gap as they are to propose contractionary monetary policy to eliminate an inflationary gap.
C
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When the percentage change in the quantity supplied is twice the percentage change in price, then supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
Explain what is meant by "investment in children," describing the goals and methods of the parents
What will be an ideal response?
A lender of the last resort refers to
A) a role of the central bank to prevent bank runs for temporary problems of liquidity. B) a role for the government to ensure that the central bank has adequate reserves. C) a reason for regulating banks. D) the need for market based regulations in the banking industry.
Which of the following is NOT a result of the ability of investors to hedge?
A) increased access to funds by firms and households B) investors are more willing to invest C) increased risk aversion D) slower economic growth