During the Great Depression, classical theorists believed that:
A. Wages would rise and full employment would be restored.
B. Full employment was unlikely without government spending.
C. Monetary policy was necessary to decrease interest rates.
D. Decreases in production were temporary.
Ans: D. Decreases in production were temporary.
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For the United States, U.S. direct foreign investment abroad is more significant than foreign investment in U.S. securities and currency
Indicate whether the statement is true or false
C = $40 million + 0.6(1 - 0.2)Y I = $35 million G = $31 million NX = -$6 million Based on the above data, the equilibrium level of GDP is
A) $113.6 million. B) $192.3 million. C) $208.3 million. D) $833.3 million.
Assuming a market rate of interest equal to 7 percent, what is the present value of $200 to be received one year from today?
A) $123 B) $156 C) $187 D) $210
A line is parallel to the vertical axis. The slope of the line is
A) zero. B) infinite. C) indicative of an inverse relationship between two variables. D) indicative of a direct relationship between two variables. E) b and d