Author Question: The proposition that the amount of goods and services produced in an economy in the long run is not ... (Read 127 times)

Frost2351 · **on:** Jun 30, 2018

The proposition that the amount of goods and services produced in an economy in the long run is not affected by the price level is known as the ________.

A) neutrality of money
B) classical dichotomy
C) quantity theory of money
D) Fisher effect
E) none of the above

Question 2

Banks in the Diamond-Dybvig model can offer depositors increased liquidity because

A) both individual depositors' liquidity needs and average depositor liquidity needs are predictable.
B) while individual depositors' liquidity needs are unpredictable, average depositor liquidity needs are predictable.
C) while individual depositors' liquidity needs are predictable, average depositor liquidity needs are unpredictable.
D) neither individual depositors' liquidity needs nor average depositor liquidity needs are predictable.