In response to the early Keynesians, monetarists contended that
A) monetary policy during the Great Depression was not easy.
B) bank failures during the Great Depression were not the cause of the decline in the money supply.
C) evidence from the Great Depression demonstrated the ineffectiveness of monetary policy.
D) there is a weak link between interest rates and investment spending.
A
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The U.S. market for locomotives is divided between two producers; General Electric has 70 percent of the market and General Motors has 30 percent. This market is an example of
a. a bilateral monopoly b. monopolistic competition c. a collusive monopoly d. a duopoly e. a cartel
A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 20 ? Q and a 50 percent chance it will be P = 40 ? Q. The marginal cost of the firm is MC = Q. What is the expression for the expected marginal revenue function?
A. E(MR) = 50 ? 2Q B. E(MR) = 40 ? 2Q C. E(MR) = 20 ? 2Q D. E(MR) = 30 ? 2Q
Which cause-and-effect chain would best explain the reason for a crowding-out effect? An expansionary fiscal policy:
A. decreases interest rates that decrease private investment spending. B. increases interest rates that decrease private investment spending. C. increases interest rates that increase private investment spending. D. decreases interest rates that increase private investment spending.
A summary of a country's economic transactions with foreign residents and governments is called the
A) current account balance. B) financial account balance. C) balance of trade. D) balance of payments.