In Keynes's liquidity preference framework, individuals are assumed to hold their wealth in two forms
A) real assets and financial assets.
B) stocks and bonds.
C) money and bonds.
D) money and gold.
C
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The gap that exists when equilibrium real GDP is less than full-employment real GDP is
A) the short-run aggregate supply curve. B) money illusion. C) an inflationary ga
The bargaining power of buyers increases if
A) the input in question is not a critical component of production. B) there are wide variations in the quality of inputs from supplier to supplier. C) there are many large buyers. D) the input in question has few substitutes.
Commodity products are
a. rare and expensive b. patented and licensed c. highly differentiated d. uniform or standardized e. ones without impurities
The IMF offers loans to developing countries in times of balance of payment constraints, but the IMF also faces strong criticisms because:
A. contractionary fiscal policy and expansionary monetary policy tend to be ineffective against balance of payment constraints. B. contractionary fiscal and monetary policies are always undesirable for any developing country. C. it employs economists that know little about developing countries and their economic affairs. D. the conditions tend to be procyclical, therefore worsening the recessions.