Early Keynesians concluded that the quantity of money was not important because they assumed
a. low interest elasticity of money demand and high interest elasticity of the demand for output.
b. high interest elasticity of money demand and low interest elasticity of the demand for output.
c. high interest elasticity of money demand and high interest elasticity of the demand for output.
d. both low interest elasticity of money demand and of the demand for output.
B
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A rightward shift in the supply curve of reserves held at the Fed ________
A) reduces the federal funds interest rate B) increases unemployment C) reduces the price level D) increases the tax rates
In a small economy in 2016, aggregate expenditure was $800 million while GDP that year was $850 million. Which of the following can explain the difference between aggregate expenditure and GDP that year?
A) Aggregate expenditure is always less than GDP in developed countries. B) Firm investment in inventories was greater than anticipated in 2016. C) Aggregate expenditure is always less than GDP in developing countries. D) Firm investment in inventories was less than anticipated in 2016.
Which of the following contributed to the soaring housing prices during 2002-2004?
What will be an ideal response?
When a nation's international borrowing is positive, then its national saving ________ its national investment.
A) exceeds B) equals C) is less than