According to Keynesians, __________ monetary policy will not remove the economy from a(an) __________ gap if __________
A) contractionary; recessionary; investment is interest-insensitive
B) expansionary; recessionary; the economy is in the liquidity trap
C) expansionary; inflationary; investment is interest-insensitive
D) contractionary; inflationary; the economy has been in the inflationary gap for more than one year
E) none of the above
B
You might also like to view...
Decreasing aggregate demand to eliminate an inflationary gap often creates the problem of
a. unemployment. b. increasing real GDP. c. increasing inflation. d. increasing the labor force.
Refer to the data. This commercial bank has excess reserves of:
Use the following balance sheet for the ABC National Bank in answering the question. Assume the required reserve ratio is 20 percent.
A. $0.
B. $3,000.
C. $12,000.
D. $5,000.