This topic contains a solution. Click here to go to the answer

Author Question: Within the Keynesian aggregate expenditures model, if the economy is below equilibrium, then there ... (Read 81 times)

krzymel

  • Hero Member
  • *****
  • Posts: 548
Within the Keynesian aggregate expenditures model, if the economy is below equilibrium, then there will be:
 a. an increase the demand for goods and services.
  b. an increase in real GDP.
  c. lower interest rates, which will stimulate aggregate demand and keep the economy at full employment.
  d. a lower price level, which will quickly guide the economy to full-employment equilibrium.

Question 2

Which of the following correctly describes the difference between commodity money and fiat money?
 a. Fiat money is only used in Italy, and is issued by a major Italian automobile manufacturer to support Italian schools.
  b. Commodity money is either made out of a valuable commodity like silver or gold, or is redeemable for a valuable commodity. Fiat money is not.
  c. Commodity money can only be used to buy commodities such as grains or lumber, while fiat money can be used to buy anything.
 d. Fiat money is used during times of emergency, such as hurricanes or war, when the existing stock of commodity money is inadequate to purchase needed goods and services.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

itsakadoozi

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

b

Answer to Question 2

b




krzymel

  • Member
  • Posts: 548
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


kishoreddi

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

For a complete list of videos, visit our video library