According to Keynes, the money demand function
a. did not change as the return on other assets changed.
b. changes with output.
c. shifts with changes in the public confidence in the economy.
d. both b and c.
e. all of the above.
C
Economics
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If the interest rate rises and government spending falls, what will happen to output, ceteris paribus?
a. It will rise. b. It will stay the same. c. It will fall. d. It is uncertain what will happen.
Economics
In the mainstream view, the economic instability brought about by "oil shocks" works through changes in:
A. Aggregate demand B. Wage and price inflexibility C. Money supply D. Aggregate supply
Economics