Which of the following may block the Keynesian transmission mechanism?
A) the loanable funds market
B) aggregate demand
C) interest-insensitive investment
D) the liquidity trap
E) c and d
E
You might also like to view...
You agree to lend $1,000 for one year at a nominal interest rate of 10%. You anticipate that inflation will be 4% over that year. If inflation is instead 3% over that year, which of the following is true?
A) The person who borrowed the $1,000 will be worse off as a result of the unanticipated decrease in inflation. B) The real interest rate you earn on your money will be negative. C) The purchasing power of the money that will be repaid to you will be lower than you expected. D) The real interest rate you earn on your money is lower than you expected.
In economics, specialization means
a. producing something using only one type of resource, such as labor b. producing something using only one type of labor c. focusing efforts on a particular product or a single task d. producing only one unit of output e. producing something using only one unit of a variable resource
In order to maximize profit, a perfectly competitive firm should select the level of output where
a. marginal revenue equals price b. marginal cost equals marginal revenue c. price exceeds marginal cost d. price exceeds marginal revenue e. total revenue equals total cost
The purpose of antitrust policy is to encourage competition in an industry.
Answer the following statement true (T) or false (F)