Question
17-) According to Keynes business investment is determined basically by ___A___ optimistic or pessimistic '' animal spirits '' and only slightly by the interest rate.
17-) According to Keynes business investment is determined basically by ___A___ optimistic or pessimistic '' animal spirits '' and only slightly by the interest rate. What should be in the blank A ?
A-) export B-) central bank C-) unemployment D-) expectations
18-) According to Friedman there are lags that make monetary policy ineffective. Which one or ones below are these lags ?
A-) observation lag B-) decision lag C-) all of them D-) effect lag
*19- ) According to Friedman to keep prices stable over the long run, Monetary policy should be like this: If an economy GDP normally grows at the rate of 5% per year, then its central bank should increase the quantity of money at ____A____ every year. What should be in the blank A ?
A-) more then %5 B-) %5 C-) less then %5 D-) zero
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