Unlike the Classical economists, Keynes believed that money could affect real economic activity through its effects on
A) the price level.
B) the interest rate.
C) savings.
D) velocity.
B
You might also like to view...
Other things being equal, demand is less elastic
A) the more expensive the good is. B) the smaller the percentage of a total budget that a family spends on a good. C) the longer is the time period for adjustment. D) the more substitutes a good has.
Policies that preclude the deliberate creation of monopoly and undesirable practices are called
A. antitrust policies. B. antimonopoly policies. C. anticompetitive policies. D. socialism.
Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Harry wants to avoid Sally at the coffee shop and is not happy when Sally ends up in the same shop he chooses. Sally would like to see Harry, and so she is not happy when Harry ends up in a different coffee shop. Harry StarbucksDunkin DonutsSally StarbucksH: ?1, S: 1H: 1, S: ?1 Dunkin DonutsH: 1, S: ?1H: ?1, S: 1Assuming that Sally and Harry go to the coffee shop each day, what is Harry's best strategy?
A. Go to Starbucks one day and Dunkin' Donuts the next and maintain that pattern. B. Go to Starbucks because Sally won't go there. C. Go to Dunkin' Donuts because Sally won't go there. D. Randomly choose between going to Starbucks and going to Dunkin' Donuts.
The earnings that a corporation saves for investment in other productive activities are
A) capital gains. B) tax incidence. C) transfers in kind. D) retained earnings.