John Maynard Keynes did NOT accept the classical assumption that
A. full employment is the natural state of the economy.
B. money balances are held only for transaction purposes.
C. interest rates do not affect the quantity of money demanded.
D. Keynes did not accept any of the above assumptions.
D. Keynes did not accept any of the above assumptions.
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Which of the following is most likely if there is a war that destroys a country's stock of capital to a level below the steady state equilibrium?
A) The GDP will be equal to the steady-state equilibrium level of GDP. B) The investment in capital will suffice to replenish the depreciating capital. C) The GDP will be more than the steady-state equilibrium level of GDP. D) The investment in capital will be lower than the amount required to replenish the depreciating capital.
President Bush lowered income taxes for individuals in 2001. Explain how lower income taxes affect the aggregate demand curve
What will be an ideal response?
Lisa views pizzas and burritos as goods. If she prefers a bundle of four burritos and four pizzas to a bundle of four burritos and five pizzas, which property of consumer preference is violated? What change in the assumptions could lead a rational
consumer to prefer the first bundle?
If a friend tells you that he is certain a stock price will rise based on information he heard on television or saw on the Internet, should you be skeptical? Explain