Author Question: The traditional Keynesian approach to fiscal policy assumes A) exchange rates are fixed. B) the ... (Read 105 times)

nautica902 · **on:** Jun 30, 2018

The traditional Keynesian approach to fiscal policy assumes

A) exchange rates are fixed.
B) the focus of attention should be the long run.
C) prices are flexible while interest rates are not.
D) current taxes are the only taxes taken into account by firms and consumers.

Question 2

In defining money according to the transactions approach, you would want to include

A) those assets that are used as a unit of account.
B) those assets that are used as a store of value.
C) those assets that are used as a medium of exchange.
D) those assets that are used as a standard of deferred payment.