Which of the following is a reason for the Keynesian view that monetary policy plays a minor role in affecting the economy?
a. The money demand curve is vertical.
b. The investment curve is very steep.
c. The money demand curve is horizontal at any interest rate.
d. The monetary rule.
b
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In an aggregate demand-aggregate supply framework, fiscal policy that emphasizes cutting taxes as a means of improving incentives to work, save, and invest would be characterized primarily as a:
A. Rightward shift of the aggregate demand curve B. Leftward shift of the aggregate demand curve C. Rightward shift of the long-run aggregate supply curve D. Leftward shift of the long-run aggregate supply curve
The increased practice of "defensive medicine" is a consequence of:
A. Professional board licensing requirements B. The threat of medical lawsuits C. Incentives given by drug companies D. An Act passed by Congress