Which view of the causes of the Great Depression emphasizes the decline in the money supply which caused aggregate demand for goods and services to shrink, leading businesses to cut production and employment?
(a) The Monetarists'
(b) The Keynesians'
(c) The Austrians'
(d) The International View
(a)
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If net interest and net transfers are zero, and a country's exports exceed its imports, the country definitely has ________
A) a current account surplus B) a current account deficit C) a capital and financial account surplus D) an official settlements account surplus
Which of the following events would reduce the size of the "real-world" money multiplier?
a. Banks hold more excess reserves. b. Households hold less currency. c. The Fed increases the discount rate. d. The Fed reduces the required reserve ratio.
The school of thought that emphasizes the possibility that an economy can be in equilibrium at less than full employment with inflation and argues that by managing aggregate demand, government can achieve the most acceptable combination of unemployment and inflation is the
a. Keynesian b. neo-Keynesian c. monetarist d. supply-side school e. rational expectations school
At the rate of output where a monopolist's marginal revenue equals zero, what is the price elasticity of demand for the monopolist's product or service?
a. Zero b. Unitary c. Infinity d. Indefinite