Question
Indicate whether each view follows the traditional (neoclassical) view of money, banking, and capitalist economies, or the heterodox (post Keynesian) view. Question 5 options: Loans
Indicate whether each view follows the traditional (neoclassical) view of money, banking, and capitalist economies, or the heterodox (post Keynesian) view.
Question 5 options:
Loans create the money necessary to invest, and therefore to produce and generate an income to deposit into banks.(loans create deposits)
Deposits into banks create the funds that get loaned out. (deposits create loans)
Money developed through rational, private actors in an attempt to economize on transaction costs
The level of investment depends most significantly on expectations ('animal spirits')
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