Because inflation was not a serious problem during the Great Depression, Keynes's analysis assumed
A) that unemployment also was not a problem.
B) that the money supply was fixed.
C) that the price level was fixed.
D) that monetary policy is not effective.
C
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With a 10 percent interest rate on dollar deposits, and an expected appreciation of 7 percent over the coming year, the expected return on dollar deposits in terms of the foreign currency is
A) 3 percent. B) 10 percent. C) 13.5 percent. D) 17 percent.
How does a residual claimant help to resolve the problems faced by independent specialized workers?
When foreigners buy U.S. dollars because they are a more stable currency than the currencies in their countries, they are generating a
A. Supply of U.S. dollars and a demand for a foreign currency. B. Supply of U.S. dollars and a supply of a foreign currency. C. Demand for U.S. dollars and a demand for a foreign currency. D. Demand for U.S. dollars and a supply of a foreign currency.
Ceteris paribus, if income increases and as a result, the demand for good X increases and the demand for good Y falls,
A. Goods X and Y are complementary goods. B. Good X is a normal good and good Y is an inferior good. C. Good X is an inferior good and good Y is a normal good. D. Goods X and Y are substitute goods.