According to the Keynesian view, the prolonged unemployment of the Great Depression:
a. was surprising because Keynesians believed that wage rates would decline and direct the economy to full employment.
b. was surprising because Keynesians believed that lower interest rates would direct the economy to full employment.
c. resulted because the total expenditures on goods and services were less than the full-employment rate of output.
d. resulted because the federal government ran large budget deficits during the 1930s.
c
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________ in the foreign interest rate causes the demand for domestic assets to ________ and the domestic currency to depreciate, everything else held constant
A) An increase; increase B) An increase; decrease C) A decrease; increase D) A decrease; decrease
This school of thought argues that because people anticipate the consequences of announced government policy and incorporate these anticipated consequences into their present decision making, people end up undermining the government policy. What is it?
a. Neo-Keynesian. b. Keynesian. c. Monetarist. d. Supply-side. e. Rational expectations.