"The price level may fall but it will not necessarily lower the interest rate, not if we are in a liquidity trap." This is a statement a __________ economist might make as an explanation of why the economy __________ pull out of a recession
A) Classical; will
B) Classical; may not be able to
C) Keynesian; will
D) Keynesian; may not be able to
D
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Rational expectations theory rejects the concept that only unanticipated or surprise policies can influence inflation
a. True b. False Indicate whether the statement is true or false
Which of the following is true?
a. The stock market provides investors with an opportunity to own a fractional share of the firm's future profits. b. A new stock issue is often an excellent way for a firm to raise funds for future expansion. c. Changes in stock prices provide information about what investors think of various business decisions. d. All of the above are true.
Which of the following is associated with global poverty?
A. Low infant mortality rates. B. Lack of health care. C. Immunization against preventable diseases. D. Opportunities for education.
Based on the graph showing the supply and demand for health care service, health insurance ______.
a. decreases the demand for health care
b. increases the demand for health care
c. decreases the price for health care
d. increases the efficiency of health care