Multiple Choice
Monetarist and Keynesian theories of money demand differs in that
A) Monetarists assumes that the demand for money is highly inelastic while Keynes assumes money demand is elastic.
B) Monetarists assumes that the money demand function is highly stable while Keynes assumes it is unstable.
C) Monetarists assumes that there is only a transactions demand for money while Keynes also considers the precautionary and speculative demands for money.
D) Monetarists assume that the proportion of income held in theform of money is constant while Keynes believes it varies.
E) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: A liquidity trap is<br>A)the vertical portion of
Q17: In the modern Keynesian model,velocity<br>A)varies positively with
Q18: The monetarist explanations of the Great Depression
Q19: Early Keynesians concluded that the quantity of
Q20: Milton Friedman and others view the instability
Q22: Compare and contrast the long-run and short-run
Q23: According to the Monetarists,the real effect of
Q24: Both the classical and monetarist models assume
Q25: In the monetarist model,an increase in both
Q26: According to the monetarists,the rise in (M1)velocity