Monetarists have trouble accepting the Keynesian view on money and the effect of money on the economy. Monetarists, unlike Keynesians, believe that
a. there is a strong cause-and-effect relationship between the money supply and real GDP, increase one and the other increases as well
b. there is a strong cause-and-effect relationship between changing expectations and the velocity of money
c. the economy is typically at full employment so that any increase in the money supply will only result in inflation
d. the cause-and-effect relationship between the money supply and money demand is mutually interdependent, that is, any increase in supply increases demand and anyincrease in demand increases supply so that the economy is typically in equilibrium
e. there is a strong cause-and-effect relationship between the interest rate and the price level that works as follows: increase the interest rate and real GDP increases whichdecreases the price level
C
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The middle class in China:
A. outnumbers the entire population of the United States. B. is almost equal in size to the entire population of the California. C. is about half the size of the population of the Germany. D. None of these is true.
The sale of stocks
a. and bonds to raise money is called debt finance. b. and bonds to raise money is called equity finance. c. to raise money is called debt finance, while the sale of bonds to raise funds is called equity finance. d. to raise money is called equity finance, while the sale of bonds to raise funds is called debt finance.
A demand curve shows the relationship between
A) the price of a produce and the demand for the product. B) the quantity that consumers are willing and able to buy and the quantity that sellers are willing and able to offer. C) the price of a product and the quantity of the product demanded. D) the amount of a product sellers are willing to sell at a particular price and the amount consumers are willing to buy at that price.
Short-run movements along the Phillips curve
a. remind us of the dangers of confusing various types of unemployment b. may determine long-run shifts of the same curve c. are usually brief and dramatic d. respond to different assumptions about consumer confidence e. lead to long-run movements along the same curve