Author Question: Compared to the fixed-price/fixed-wage model, in the Keynesian model with a flexible price but fixed ... (Read 88 times)

laurencescou · **on:** Jun 30, 2018

Compared to the fixed-price/fixed-wage model, in the Keynesian model with a flexible price but fixed wage, an increase in the money stock will cause output to rise by

a. less while the interest rate will fall by more.
b. less and the interest rate to fall by less.
c. more but the interest rate to fall by less.
d. more and the interest rate to fall by more.

Question 2

Unlike the Federal Reserve Bank of today, the First and Second Banks

(a) could create corporations by special franchise.
(b) were generally supported by the rest of the banking community.
(c) were direct competitors with private business.
(d) provided a federal safety fund in times of well banking crisis.