The "No - Markets Fail Often" camp believes that
A) external supply shocks are the main contributors to business cycles.
B) money and the loanable funds market facilitate the transmission mechanism between interest rates and aggregate demand.
C) money creates new internal demand shocks.
D) money helps markets adjust to equilibrium.
E) when people save more money, lower interest rates always increase business investment spending.
Correct Answer:
Verified
Q196: Higher interest rates are a negative demand
Q197: Higher interest rates are a positive demand
Q198: Modern followers of J.B. Say and J.M.
Q199: Increases in the money supply cause lower
Q200: Decreases in the money supply cause higher
Q202: The "Yes - Markets Self-Adjust" camp believes
Q203: Followers of J.B. Say and J.M. Keynes
Q204: According to the "Yes - Markets Self-Adjust"
Q205: According to the "No - Markets Self-Fail
Q206: Followers of J.B. Say and J.M. Keynes
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