the economics of money, banking, and financial markets

804 "

© 2014 Pearson Canada Inc."

13. 
    

    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

    
    


14. 
    

    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

    
    


15. 
    

    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

    
    


16. 
    

    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