According to Keynesians, an increase in the money supply will have its greatest impact on real GDP and least impact on the price level when the aggregate demand curve intersects
a. the vertical portion of the aggregate supply curve
b. the upward sloping portion of the aggregate supply curve
c. the horizontal portion of the aggregate supply curve
d. either the upward sloping or the vertical portions of the aggregate supply curve
e. either the horizontal or vertical portions of the aggregate supply curve
C
You might also like to view...
Explain what it means to choose at the margin and illustrate with three choices at the margin that you have made today
What will be an ideal response?
The dollar rate of return on euro deposits is
A) approximately the euro interest rate plus the rate of depreciation of the dollar against the euro. B) approximately the euro interest rate minus the rate of depreciation of the dollar against the euro. C) the euro interest rate minus the rate of inflation against the euro. D) the rate of appreciation of the dollar against the euro. E) the euro interest rate plus the rate of inflation against the euro.