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(Solved by Expert Tutors)Question 21
Keynesian economists argue that supply-side fiscal poli
Question 21
Keynesian economists argue that supply-side fiscal policy will not work because
the money supply is controlled endogenously | |
the rich have a lower MPC |
of trickle down economics | |
the rich have a higher MPC |
Question 22
A reserve shortage for the banking sector as a whole:
means all banks can meet their reserve requirement and the fed funds rate will fall | |
means all banks can meet their reserve requirement and the fed funds rate will rise |
means not all banks can meet their reserve requirement the fed funds rate will fall | |
means not all banks can meet their reserve requirement and the fed funds rate will rise |
Question 23
According to MMT sovereign governments are able to spend by
crediting bank accounts | |
borrowing by issuing bonds |
generating tax revenue | |
all of the above |
Question 24
According to Keynes the rate of interest is
a measure of people's uncertainty about the future | |
all of the above |
the reward for not hoarding | |
the premium required to convince someone to part with liquidity |
Question 25
Which of the following most accurately describes the logical structure of the classical model
Say?s Law is required to maintain the assumption of full employment, and in turn, the loanable funds model is required to preserve Say?s law | |
The assumption of full employment underpins the Loanable funds market, which in turn, requires the assumption of Say?s Law. |
Say?s Law rests on the assumption of full employment, which in turn, depends on the loanable funds market | |
The loanable funds model requires the adoption of Say?s Law, in turn, both the loanable funds market and Say?s law rest on the assumption of full employment. |
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DATE ANSWEREDApr 19, 2020
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