Monetarists differ from traditional classical theorists in their belief that
a. velocity is not constant
b. the only motive for demanding money is the transactions demand
c. investment is very sensitive to changes in the interest rate
d. the economy operates at full-employment
e. increases in the money supply do not lead to changes in real GDP
A
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In the consumption function C = a + c(Y - T), the "marginal propensity to consume" appears as
A) a. B) c. C) cY. D) -cT. E) c(Y - T).
If self-correction causes prices to fall less than nominal wages, both output and real wages will decrease
a. True b. False Indicate whether the statement is true or false
Classical growth theory argued that economic growth was limited because of diminishing marginal productivity.
Answer the following statement true (T) or false (F)
"The problem with a common resource is that no one gets to use the resource." Comment on the preceding assertion
What will be an ideal response?