In the Keynesian money market, velocity is
a. negatively related to the interest rate.
b. independent of the interest rate.
c. positively related to the interest rate.
d. is positively related to the money supply.
e. is not related to the interest rate but income.
C
You might also like to view...
Use the following table to answer the next question.Year123456Price Index10095105125125120Nominal GDP rises faster than real GDP between years ________.
A. 2 and 4 B. 5 and 6 C. 1 and 2 D. 4 and 5
In terms of capabilities, education can be seen as:
A. contributing to better family planning. B. a factor that reduces income inequality in countries. C. a feature of more democratic regimes. D. something that requires a lot of funding, but produces very little return.
Which of the following would most likely cause an adverse long-run aggregate supply shock and stagflation?
a. A long-term oil embargo that reduces oil supply to industrialized countries b. A tax cut that stimulates production incentives for industries c. Technological innovation that substantially enhances the productivity of an economy's resources d. Abundant harvests that increase the food supply
Expansionary fiscal policy will most likely result in
A) a decrease in the money supply B) an increase in the marginal propensity to consume C) an increase in the nominal interest rates D) a decrease in the level of output E) a decrease in the price level