If interest rates rise,then velocity should ____ in the Keynesian model and _____ in the Monetarist model.
A) rise; fall.
B) stay the same,stay the same.
C) rise,stay the same.
D) fall; rise.
E) none of the above
Correct Answer:
Verified
Q14: Keynesians argue that the interest elasticity of
Q15: The monetarists would expect a tax cut
Q16: Keynesians believe that the interest elasticity of
Q17: During the Great Depression,the money supply fell
Q18: In the Monetarist model,how long is the
Q20: If interest rates rise,what happens to the
Q21: The Monetarist model differs from the classical
Q22: Friedman and others view changes in velocity
Q23: Monetarists emphasize
A)crowding-out but not the liquidity trap.
B)crowding-out
Q24: According to the monetarist view,the
A)IS schedule is
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