Which of the following characterizes the Monetarist viewpoint?
a. They believe that money can never affect investment.
b. They believe that monetary policy is transmitted to the economy only through its effects on the interest rate and investment.
c. Both a and b are part of the debate.
d. Neither a nor b are part of the debate.
d
You might also like to view...
The accounting framework used in measuring current economic activity is called
A) the U.S. expenditure accounts. B) the national income accounts. C) the flow of funds accounts. D) the balance of payments accounts.
Following Keynesian economics, and assuming a marginal propensity to consume (MPC) of 0.75, an increase in taxes of $100 billion would be expected to shift the aggregate demand curve by $300 billion to the left
a. True b. False Indicate whether the statement is true or false
Some would cite the purchase of defective products and the rising cost of health care as market failures. Argue that these are not true market failures
Which of the following statements best captures the intuitive reason behind discounting?
A) Since incomes rise over time, discounting means that we place less weight on benefits and costs today and more weight on benefits in the future. B) Since dollars today can be invested, to obtain $1 in the future we have to give up less than $1 today. Hence future benefits and costs are given more weight than benefits and costs today. C) Since investments yield a return, we have to give up less than $1 today to obtain $1 in future benefits. Hence we place less weight on future benefits and costs than we would on benefits and costs that dollars occur today. D) Since dollars today can be invested, yielding a positive return, discounting places more weight on future returns.