According to the New Keynesian Cycle Theory of the Business

question 399

Multiple Choice

According to the new Keynesian cycle theory of the business cycle, which of the following can trigger a business cycle expansion?
I. an unexpected increase in the quantity of money
II. an expected increase in the quantity of money
III. an expected increase in government expenditure

• A) I only
• B) II and III
• C) I, II and III
• D) None of the three will trigger an expansion.

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Definitions:

Deuterostomes

A major group within the animal kingdom that includes organisms developing an anus from the first opening in the embryo, with subsequent formation of the mouth.

Protostomes

A group of animals characterized by developing the mouth before the anus during embryonic development, including mollusks and arthropods.

Deuterostomes

A category of animals characterized by their embryo development; the first opening (the blastopore) becomes the anus.

Bilaterally Symmetrical

Bilaterally Symmetrical refers to organisms that can be divided into matching halves along a single plane, indicative of a high level of organizational complexity.