Keynes argued that

I. Capitalism did not always lead to full employment.
II. Nominal prices were more important than relative prices.

A) I only B) II only C) Both I and II D) Neither I nor II


A

Economics

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Suppose consumers save 8 percent of their incomes. If the government collects 4 dollar in taxes from each taxpayer and invested it in infrastructure, total social investment will ________ per taxpayer

A) increase by 32 cents B) increase by $ 4.32 C) increase by $3.68 D) decrease by 64 cents

Economics

Which of the following factors leads to a drastic rise in the price of assets?

a. Increased supply of assets b. Increase in the market rate of interest c. Reduced demand for money d. Increased liquidity in the economy e. Contractionary monetary and fiscal policies being undertaken by the government

Economics

The accumulated knowledge, skills, and expertise that the average worker in an economy possesses is called:

a. human capital. b. knowledge capital. c. technical capital. d. working capital.

Economics

Suppose that a bank's actual reserves are $5 million, its checkable deposits are $5 million, and its excess reserves are $3 million. The reserve requirement must be:

A. 40 percent. B. 20 percent. C. 10 percent. D. 5 percent.

Economics