According to traditional Keynesians, monetary policy as a tool to fight a recession
A) is very effective because interest rates will fall immediately.
B) has an uncertain effect on the economy, depending on the direction of fiscal policy.
C) is ineffective because interest rates will not fall.
D) cannot be determined because traditional Keynesians do not consider monetary policy at all.
C
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The market system is also known as:
A. Capitalism B. Socialism C. Central planning D. Production system
The domestic opportunity cost of producing a television in the United States is 20 bushels of wheat. In Korea, the domestic opportunity cost of producing a television is 10 bushels of wheat. In this case:
A. Korea has a comparative advantage in the production of wheat B. The United States has a comparative advantage in the production of televisions C. Mutual gains from trade can be obtained if the United States imports televisions from Korea and Korea imports wheat from the United States D. Mutual gains from trade can be obtained if the United States imports wheat from Korea and Korea imports televisions from the United States