According to the Keynesian view of the demand for money, an increase in uncertainty will cause
A) a decrease in interest rates.
B) an increase in interest rates.
C) an increase in aggregate income.
D) an increase in consumption.
B
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Which has greater elasticity: a supply curve that goes through the origin with slope of 1 or a supply curve that goes through the origin with slope of 5?
A. The supply curve with slope of 1. Slope and elasticity are inversely related so the lower the slope, the higher the elasticity. B. They both have the same elasticity. Any supply curve with a positive slope has the same elasticity. C. They both have the same elasticity. Any supply curve that goes through the origin has an elasticity of 1. D. The supply curve with slope of 5. Slope and elasticity are directly related so the higher the slope, the higher the elasticity.
In a simple Keynesian model, an increase in income leads to an increase in
A) savings. B) investment. C) the price level. D) the money supply.