Multiple Choice
Classical economists traditionally believed that:
A) there are three motives for demanding money.
B) a change in the money supply can affect real GDP.
C) the transactions demand for money influences the velocity of money.
D) the velocity of money is constant.
E) the economy does not always operate at full employment.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: In Keynes's view, an excess quantity of
Q43: A decrease in the money supply<br>A) lowers
Q63: The precautionary demand for money:<br>A) varies inversely
Q65: Assuming an inflationary gap exists, classical economists
Q66: A policy to do nothing and allow
Q68: According to Keynesians, an increase in the
Q69: The transactions demand for holding money is
Q72: When the interest rate falls,<br>A) the opportunity
Q104: Keynes called money people hold to make
Q115: The velocity of money is the<br>A) rate