An essential piece of the liquidity preference theory is the demand for money
a. True
b. False
Indicate whether the statement is true or false
True
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The ratio of the increase in equilibrium real GDP to the increase in autonomous expenditure is called the
A) MPC. B) consumption function. C) MPS. D) multiplier.
In which of the following years was inflation in the United States the highest?
a. 1960. b. 1970. c. 1980. d. 1990. e. 2007.
Which of the following does the U.S. president appoint and the U.S. Senate confirm?
a. members of the Board of Governors and regional Federal Reserve Bank Presidents. b. members of the Board of Governors but not the regional Federal Reserve Bank Presidents. c. the regional Federal Reserve Bank Presidents, but not members of the Board of Governors. d. neither members of the Board of Governors nor regional Federal Reserve Bank Presidents.
Discuss the major differences between classical and Keynesian economists. Be sure to explain how they differ with regard to how quickly equilibrium is restored in the economy as well as what role they see for government action in restoring equilibrium.
What will be an ideal response?