Keynesian theorists argue that any increase in the money supply
A) is effective in increasing GDP only if it causes an outward shift of the aggregate supply curve.
B) will increase GDP only if interest rates fall and investment is sensitive to decreasing interest rates.
C) causes velocity to increase,and so in the short run nominal output must increase.
D) will move the economy from the "liquidity trap" during times of recession if interest rates fall enough to stimulate private investment.
Correct Answer:
Verified
Q75: If M = $100,Q = 500 and
Q77: If V = 5,P = $3,and Q
Q78: Other things constant,the crude quantity theory of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents