According to the monetarist theory, an increase in government spending would have
a. only weak effects on both output and the price level.
b. a weak effect on output with a strong effect on the price level.
c. a weak effect on the price level but a strong output effect.
d. stronger effects on output if financed with increases in the money supply.
e. both a and d.
E
Economics
You might also like to view...
You consume only steak and lobster. Your income effect from a drop in the price of lobster is measured by a movement along your indifference curve between steak and lobster
Indicate whether the statement is true or false
Economics
Rationing occurs for goods
A) that have a positive price. B) that have a zero price. C) that have a negative price. D) that are not manufactured.
Economics