Which of the following is false? Critics of the ISLM framework have stated that
A) there is no linkage between flow and stock concepts.
B) the interest rate is the only mechanism through which monetary policy operates.
C) money is not a substitute for physical assets.
D) velocity is assumed to be constant.
D
You might also like to view...
A major characteristic of monopoly is that
A) no barriers to entry exist. B) the product is identical to that produced by other companies. C) a barrier to entry keeps out competitors. D) competition is intense. E) a few firms compete with each other.
A growing government budget deficit and national debt reduces economic growth because
A) it insures that future generations will have to pay the debt. B) it reduces public investment. C) it reduces household saving. D) it diverts private savings from the financing of private investment.