Which of the following is correct?
a. Keynesians believe there is a direct link between changes in a nation's money supply and changes in expenditures.
b. Monetarists believe there is an indirect link between changes in a nation's money supply and changes in expenditures.
c. Monetarists believe there is a direct link between changes in a nation's money supply and changes in expenditures.
d. Monetarists believe there is no short-term link between changes in a nation's money supply and changes in expenditures.
e. Keynesians believe there is no short-term link between changes in a nation's money supply and changes in expenditures.
.C
You might also like to view...
The income effect of a decrease in the price of legal services, a normal good, results in
A) an increase in the demand for legal services. B) an increase in the quantity of legal services demanded. C) a decrease in the demand for legal services. D) a decrease in the quantity of legal services demanded.
Government revenue generated by the issue of currency is known as ________
A) monetizing the debt B) triage C) seignorage D) hyperinflation
Last month, Sally spent $3,000 in repairing her old car. Now her car requires an additional $2,000 in repairs. She could get a comparable car for $2,500 . She should
a. repair her car because the money she has already spent repairing the car ($3,000 . exceeds the price of the new car ($2,500) b. buy a new car because sunk costs should be ignored in decision making c. buy a new car because the price of the new car ($2,500) is less than the total amount she would spend on her current car ($5,000) d. repair her car since the cost of repairing it is lower than the cost of buying another car e. repair the car or buy a comparable one because the opportunity costs are the same
What should be added to national income to calculate GNP?
A. net factor payments to the rest of the world B. personal income taxes C. indirect taxes D. depreciation