Monetarists emphasize
a. crowding-out but not the liquidity trap.
b. crowding-out and the liquidity trap.
c. the liquidity trap but not crowding-out.
d. neither crowding-out nor the liquidity trap.
Question 2
One reason the colonials complained about the Navigation Acts was
(a) the shortage of money; they believed the trade deficits of the colonies were bleeding them
of coins.
(b) the surplus of money that was causing inflation; they believed the trade deficits were flooding the colonies with coins.
(c) the Acts' not allowing foreign coins, which created a shortage of foreign coins relative to British coins.
(d) the Acts' requirement that only paper money would circulate in the colonies, without the backing of gold.
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