the economics of money, banking, and financial markets

810 "

© 2014 Pearson Canada Inc."

37. 
    

    Early Keynesians viewed monetary policy as influencing aggregate demand solely through
    its impact on ____ interest rates, which, in turn, affect ____ spending.
    A) nominal; consumer
    B) nominal; investment
    C) real; consumer
    D) real; investment
    Answer: B
    Diff: 2 Type: MC Page Ref: 643
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence

    
    


38. 
    

    Early Keynesians believed that ____ interest rates during the Great Depression
    indicated that monetary policy was ____.
    A) high; easy
    B) high; tight
    C) low; easy
    D) low; tight
    Answer: C
    Diff: 2 Type: MC Page Ref: 643
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence

    
    


39. 
    

    Early Keynesians believed that low ____ during the Great Depression indicated that
    ____ policy was easy.
    A) money growth; fiscal
    B) money growth; monetary
    C) interest rates; fiscal
    D) interest rates; monetary
    Answer: D
    Diff: 2 Type: MC Page Ref: 643
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence

    
    


40. 
    

    Early Keynesians concluded that changes in monetary policy had no impact on aggregate
    output because early empirical studies found no linkage between movements in ____ and
    ____.
    A) nominal interest rates; investment spending
    B) real interest rates; investment spending
    C) money supply; aggregate output
    D) investment spending; aggregate output
    Answer: A
    Diff: 2 Type: MC Page Ref: 643
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence