Which economists believe that fiscal policy is effective, while monetary policy may be ineffective?
a) Monetarists
b) Keynesians
c) Classical economists
d) Fisherites
Ans: b) Keynesians
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One problem with a cost plus incentive fee procurement contract is _____
a. it requires clearly defined output that is not really malleable b. it almost always leads to higher costs c. firms have a strong incentive to invest in the most expensive technology to complete the project d. firms have an incentive to misrepresent final costs
Sue consumes only sub sandwiches and Mountain Dew. Subs and Mountain Dew are complements. If the price of a sub sandwiches increases
A) Sue will move upward along her demand curve for subs. B) Sue will move downward along her demand curve for subs. C) Sue's demand curve for subs will shift leftward. D) Sue's demand curve for subs will shift rightward.
Which of the following does not occur in resolving a debt crisis?
A) Debts are restructured B) Repayment periods are shortened C) Interest rates are reduced D) Some partial debt forgiveness
According to new classical model, real wages
a. rise when income rises. b. falls when income rises. c. do not move within income. d. fall if the expected price level is too high and rise if the expected price level is too low. e. none of the above.