Multiple Choice
In Keynes' concept of the liquidity trap,
A) monetary policy becomes more effective as interest rates fall below normal.
B) people wish to hold more bonds as interest rates fall below normal.
C) people wish to hold fewer bonds as interest rates fall below normal.
D) there is a need for more liquidity in the banking system.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: If the MPC is b, then the
Q3: In the Keynesian model, which of the
Q4: In the Keynesian model when desired investment
Q5: Consumption spending is _ and investment spending
Q6: According to supply-siders the main consequence of
Q7: An individual anticipating rising interest rates is
Q8: In the Keynesian model, portfolio decisions of
Q9: If the consumption function can be described
Q10: In the standard consumption function of C
Q11: In the "cost of capital channel" of