Monetarists believe that changes in the supply of money
A) do not affect aggregate demand.
B) affect aggregate demand through the loanable funds market only.
C) affect only the investment component of aggregate demand.
D) affect aggregate demand directly.
D
You might also like to view...
John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517A second hour cleaning windows will yield additional earnings of ________.
A. $8 B. $7 C. $14 D. $2
A tax rebate, which is expected to be offered in this and all future years, will
A) have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate. B) increase aggregate supply and aggregate demand. C) have a small positive effect on consumption and aggregate demand. D) have no effect on consumption and aggregate demand.
As the wage rate increases for computer programmers, the
a. supply curve for computer programmers will shift to the right b. supply curve for computer programmers will shift to the left c. demand curve for computer programmers will shift to the left d. minimum wage will fall in this labor market e. supply curves for workers in similar industries will shift to the left
The profit-maximizing level for all firms in ________ is the output level where MC = MR.
A. only perfectly competitive industries B. only large industries C. only monopoly industries D. any industry