The New Keynesian model, is Keynesian in that ________. A) it ...

[plus1]

The New Keynesian model, is Keynesian in that ________.
 
  A) it assumes wages and prices are sticky
  B) changes in the money supply are taken to be the single most important influence on business movements
  C) the velocity of money is a constant
  D) expectations are assumed to be rational

Question 2

Commercial banks are financial intermediaries, as are ________.
 
  A) household savers
  B) state and local governments
  C) insurance companies
  D) organized exchanges

[bdobbins]

Answer to Question 1

A

Answer to Question 2

C