Solved

Keynes's Theory That the Interest Rate Adjusts to Bring Money

Question 20

Multiple Choice

Keynes's theory that the interest rate adjusts to bring money supply and money demand into balance is called:

A) the theory of sticky wages
B) the theory of sticky prices
C) the classical dichotomy theory
D) the theory of liquidity preference

Related Questions

Q15: An increase in Australia's marginal propensity to

Q16: For a given fixed price level, an

Q17: An increase in money supply shifts the

Q18: According to the theory of liquidity preference,

Q19: Changes in government spending affect saving and

Q21: Suppose the government reduces taxes by $20

Q22: Most economists believe that a cut in

Q23: Suppose that equilibrium in the money market

Q24: If MPC = 0.6, then the government

Q25: Like a commodity, the money supply curve