In the monetarist model, an autonomous increase in investment demand would have
a. only a weak effect on the level of output.
b. a strong positive effect on the level of output.
c. no effect on the interest rate.
d. stronger effects on output if financed with increases in the money supply.
e. both a and d.
E
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Shirley has to choose between a two-day trip and a three-day trip to Hollywood. The table below shows the expected benefit and cost for the different days
Using optimization in levels and optimization in differences, determine what Shirley's optimum decision should be. Does the decision differ with the techniques used? Which technique is faster to implement? Day Cost Benefit 1 $750 $800 2 $900 $1,000 3 $600 $800
The period of the business cycle which follows the trough is the
A) recession. B) expansion. C) peak. D) All of the above may follow the trough.