The assumption that the velocity of money and the quantity being produced is constant is held by the:
A. Keynesian school.
B. supply-side school.
C. classical school.
D. rational expectations school.
Answer: C
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An asset is said to be riskless if:
A) it can be easily converted into cash. B) its value does not change from day to day. C) its value is more likely to fall in future. D) it offers a positive rate of interest.
_____ advantages refer to the mode of entry abroad.
a. Locational, or country-specific b. Environmental c. Internalization d. Externalized e. Ownership, or firm-specific
To achieve a high standard of living, a nation should: a. increase welfare payments to the poor
b. use less capital and more labor in the production process. c. promote economic growth. d. increase the tax deduction for child dependents.
An increase in the money supply will:
a. decrease both investment spending and aggregate demand. b. decrease investment spending and increase aggregate demand. c. decrease both consumption spending and aggregate demand. d. increase both investment spending and aggregate demand. e. increase investment spending and decrease aggregate demand