In the Keynesian model, the difference between using monetary and fiscal policy to eliminate a recession is that
A) monetary policy will eliminate a recession quicker than fiscal policy will.
B) fiscal policy will eliminate a recession quicker than monetary policy will.
C) an expansionary monetary policy will leave the economy with a lower real interest rate than an expansionary fiscal policy.
D) an expansionary fiscal policy will leave the economy with a lower real interest rate than an expansionary monetary policy.
C
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In the Solow model, if f(k) = 2k0.5, s = 0.25, n = 0.1, and d = 0.4, what is the value of k at equilibrium?
A) 1 B) 2 C) 3 D) 4
If the price level in the current period is higher than what buyers and sellers anticipated,
What will be an ideal response?
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Indicate whether the statement is true or false