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Author Question: In the Keynesian system, an increase in the money stock would a. increase the interest rate, ... (Read 113 times)

michelleunicorn

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on: Jun 30, 2018
In the Keynesian system, an increase in the money stock would
 
  a. increase the interest rate, which, in turn, would increase aggregate demand and income.
  b. decrease the interest rate, which, in turn, would decrease aggregate demand and income.
  c. decrease the interest rate, which, in turn, would increase aggregate demand and income.
  d. decrease the interest rate but would have no effect on aggregate demand and income.

Question 2

Which of the following would be evidence against rational expectations?
 
  a. unpredictable changes in policy have real effects.
  b. new information leads to changes in output.
  c. the public never make mistakes with respect to price level predictions.
  d. changes in stock prices change much more often than new information becomes available.


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BAOCHAU2803

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

D


michelleunicorn

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

juliaf

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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