FIGURE 27-6 Refer to Figure 27-6

question 93

Multiple Choice

FIGURE 27-6 Refer to Figure 27-6.The famous debate from the 1950s and 1960s between Keynesians and Monetarists centred around the slopes of the money demand and investment demand curves.The Monetarists believed

• A)the diagrams in part (ii)were more realistic than those in part (i),and therefore fiscal policy was a more effective method of stimulating aggregate demand than monetary policy.
• B)the diagrams in part (ii)were more realistic than those in part (i),and therefore monetary policy was a more effective method of stimulating aggregate demand than fiscal policy.
• C)the diagrams in part (i)were more realistic than those in part (ii),and therefore fiscal policy was a more effective method of stimulating aggregate demand than monetary policy.
• D)the diagrams in part (i)were more realistic than those in part (ii),and therefore monetary policy was a more effective method of stimulating aggregate demand than fiscal policy.

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Definitions:

Fetus

A developing mammal after the embryonic stage and before birth, particularly in humans from the ninth week of gestation until birth.

Uterus

A major female reproductive organ where fetal development occurs; also known as the womb.

Vagina

A muscular tube leading from the external genitals to the uterus in women and female mammals, involved in sexual intercourse and childbirth.

Fallopian Tube

A pair of tubes along which eggs travel from the ovaries to the uterus; a key site for fertilization.