Which of the following is a reason for the Keynesian view that monetary policy plays a minor role in affecting the economy?
a. The money demand curve is vertical.
b. The investment curve is very steep.
c. The money demand curve is horizontal at any interest rate.
d. The monetary rule.
b
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Firms in industrial countries find a larger market for their goods in other industrial countries than in developing countries because:
a. the consumption patterns in the industrial countries are highly heterogeneous. b. the trade policies of the industrial nations are more favorable than the developing countries. c. the industrial countries tend to have a higher population than the developing countries. d. the industrial countries are capital intensive countries. e. the consumption patterns in the industrial countries are more or less similar.
In order for a firm to maximize profits through price discrimination, the firm must have some market power and be able to prevent arbitrage
a. True b. False Indicate whether the statement is true or false
The interest rate on primary credit extended by the Fed is:
A. equal to the IOER. B. the average of the prime interest rate charged by the ten largest banks in the nation. C. below the IOER. D. above the IOER.
If the demand curve for open-heart surgery is vertical for people with serious heart conditions, then the demand for open-heart surgery is ________ with respect to price.
A. unit elastic B. inelastic C. perfectly inelastic D. perfectly elastic