The major difference between the Keynesian approach and the monetarist approach is that
a. Keynesian analysis explains an equilibrium condition and monetarism does not.
b. in Keynesian analysis, money affects the economy by first affecting interest rates; monetarist analysis is not limited to working through interest rates.
c. monetarism explains an equilibrium condition and Keynesian analysis does not.
d. there are no differences.
b
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A nation's balance of payments can be affected by
A) the country's inflation rate relative to other nations' inflation rates. B) the country's population increases relative to other nations' populations. C) per capita GDP relative to other nations' per capita GDP. D) none of the above.
Assume that the Paris First National Bank's loan position contracted from $16 million to $12 million. If the required reserve ratio was increased from 20 percent to 40 percent, how much would the money supply shrink?
A. $5 million. B. $10 million. C. $15 million. D. $20 million.
Refer to Table 2-20. What is Japan's opportunity cost of producing one wristwatch?
A) 0.04 pounds of rice B) 4 pounds of rice C) 25 pounds of rice D) 40 pounds of rice
Which of the following is NOT one of the ways a budget surplus can be used?
A) to allow private saving to fall without any need for a decline in total investment B) to stimulate domestic investment C) to reduce foreign investment D) to increase the amount of borrowing from foreigners