In the Keynesian view,
a. both monetary and fiscal policy can affect income.
b. monetary policy can be ineffective when money demand is less interest rate elastic.
c. fiscal policy is a more reliable way to stimulate output during a recession.
d. all of the above
D
You might also like to view...
Comment on the following statement: "When a firm retains earnings for investment purposes, it is actually saving on behalf of its shareholders."
What will be an ideal response?
A. What are the two effects of an increase in the wage rate on an individual's labor supply decision? Briefly explain each effect
b. Explain how a labor supply curve could be backward bending. What will be an ideal response?
According to Keynesian economists, the aggregate supply curve is
a. horizontal b. vertical c. vertical at low levels of output and horizontal at high levels of output d. horizontal at low levels of output and vertical at high levels of output e. upward sloping
The burden of a tax is
A. the amount of revenue that the government raises from the tax. B. what it would cost in alternative tax revenue to provide the same level of service. C. greater as the total revenue from the tax decreases. D. the amount the taxpayer would have to be given to be just as well off in the presence of the tax as in its absence.