Author Question: Which of the following models advocate that the quantity of money should be increased at a constant ... (Read 95 times)

fnuegbu · **on:** Jun 29, 2018

Which of the following models advocate that the quantity of money should be increased at a constant rate?

A) the real business cycle model B) the new classical model
C) the new Keynesian model D) the monetarist model

Question 2

If policymakers are concerned that the economy is in danger of rising inflation because aggregate demand is increasing faster than aggregate supply, the appropriate fiscal policy response is to

A) increase government spending. B) increase taxes.
C) increase interest rates. D) use expansionary fiscal policy.