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Writing in 1752, David Hume's Essay, "Of Money

Question 42

Multiple Choice

Writing in 1752, David Hume's essay, "Of Money,"


A) showed that changes in the money supply were unrelated to short-run fluctuations in output.
B) suggested that an increase in the money supply would be favorable to industry in the long-run.
C) echoed John Maynard Keynes' view that sticky prices would lead to short-run deviations of output from the level of potential real GDP.
D) was unable to unravel the nature and role of money in the economy because he ignored sticky prices.

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