The Monetarist model differs from the classical model in that
A) changes in aggregate demand,not aggregate supply,drive changes in output.
B) changes in the money supply drive changes in inflation inflation.
C) changes in aggregate supply,not aggregate demand,drive changes in ouput.
D) money demand is not always stable.
E) none of the above.
Correct Answer:
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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
Q19: If interest rates rise,then velocity should _
Q20: If interest rates rise,what happens to the
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
Q25: Monetarists assume that people form their expectations
Q26: According to the monetarists,the ratio of nominal
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