Keynesians believe that
A) the link between money and aggregate demand is very strong.
B) interest rates will immediately respond to a change in investments.
C) fluctuations in the price level are a source of stability.
D) the interest rate will not necessarily respond to a drop in investments.
D
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In the above table, the technique that is not technologically efficient is
A) A. B) B. C) C. D) D.
Refer to Scenario 2. What is the estimated regression equation for determining the market value of houses?
What will be an ideal response?
Bond prices are determined mainly by the demand for bonds
Indicate whether the statement is true or false
Assume a reserve requirement of 10 percent. A commercial bank has total reserves of $100,000, excess reserves of $25,000, and total checkable deposits outstanding of $750,000. If the reserve requirement were increased to 15 percent,
a. total expansion of the money supply would be limited to $750,000. b. excess reserves would be decreased to $12,500. c. the bank would have no alternative but to decrease its check able deposits. d. the bank would be $12,500 short of required reserves.