Which of the following is correct?
a. Monetarists believe there is a direct link between changes in a nation's money supply and changes in expenditures.
b. Monetarists believe there is no short-term link between changes in a nation's money supply and changes in expenditures.
c. Keynesians believe there is no short-term link between changes in a nation's money supply and changes in expenditures.
d. Keynesians believe there is a direct link between changes in a nation's money supply and changes in expenditures.
e. None of the above.
.A
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Grapes can be used to produce wine or raisins. Which graph in Figure 4-6 best depicts the effects on the U.S. raisin market of a decline in purchases of domestic wine?
A. 1 B. 2 C. 3 D. 4
Transfer payments are not included in GDP because
A) their market value cannot be accurately determined. B) they do not generate additional income. C) they are not purchases of goods or services. D) their value is included in government expenditure.
If a marginal cost pricing rule is imposed on the firm in the figure above, the firm will produce
A) 5 units. B) 20 units. C) 30 units. D) 40 units.
"The recent availability of satellite television has reduced the price of cable television subscriptions." Based on this statement, what may be concluded about price, cross-price, or income elasticity of demand?
What will be an ideal response?