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© 2014 Pearson Canada Inc."
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
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
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
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