In the Keynesian model with a fixed price level and a fixed money wage, an increase in the money supply will cause
a. output to fall and interest rates to fall.
b. output to remain unchanged.
c. output to rise and the price level to fall.
d. output to rise and interest rates to fall.
D
Economics
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When a consumer is maximizing total utility,
A) the average utility from each dollar spent is the same. B) total utility cannot be increased by reallocating expenditures among various products. C) the total utility obtainable from each product is at a maximum. D) the marginal utility of the last unit of each product purchased is zero.
Economics
If Urban Outfitters borrows $25 million from a bank to finance the construction of a new store, this is an example of
A) a bond market transaction. B) a stock market transaction. C) indirect finance. D) direct finance.
Economics