804 "
© 2014 Pearson Canada Inc."
The monetarists complained that early Keynesian structural models tended to ignore the
impact of monetary policy changes on ____.
A) interest rates
B) investment spending
C) consumption spending
D) capital goods spending
Answer: C
Diff: 2 Type: MC Page Ref: 640
Skill: Recall
Objective List: 25.1 Express the different types of empirical evidence
Monetarists contend that the channels of monetary influence in Keynesian structural models
are too ____ defined, ____ the importance of monetary policy.
A) broadly; exaggerating
B) broadly; understating
C) narrowly; understating
D) narrowly; exaggerating
Answer: C
Diff: 2 Type: MC Page Ref: 640
Skill: Recall
Objective List: 25.1 Express the different types of empirical evidence
Monetarists claim that ____ models ignore important transmission mechanisms and
therefore ____ the importance of the effects of monetary policy on the economy.
A) structural; overstate
B) reduced-form; overstate
C) reduced-form; understate
D) structural; understate
Answer: D
Diff: 2 Type: MC Page Ref: 640
Skill: Recall
Objective List: 25.1 Express the different types of empirical evidence
Monetarists assert that monetary policy may affect aggregate demand through ____.
A) only an interest rate channel
B) only an exchange rate channel
C) only two channels: interest rates and exchange rates
D) many channels
Answer: D
Diff: 2 Type: MC Page Ref: 640
Skill: Recall
Objective List: 25.1 Express the different types of empirical evidence