Keynesians Believe That the Difference Between Using an Increase in the Money

question 83

Multiple Choice

Keynesians believe that the difference between using an increase in the money supply compared with an increase in government spending to increase aggregate demand in the event of a recession is that if government spending is increased,________ will be ________ than if the money supply is increased.

• A)real interest rate; higher
• B)real interest rate; lower
• C)the price level; lower
• D)the price level; higher

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Definitions:

Idle Time

Periods when resources are available but not in use, often due to delays, inefficiencies, or lack of demand, leading to wasted capacity.

Observations

The process of monitoring, recording, and analyzing data or events for the purpose of drawing conclusions or making decisions.

Predetermined Time Standard

A method used in industrial engineering and time management to estimate the time required for completing a task based on standard time units.

TMU

Time Measurement Unit, a standard unit used in time study and work measurement for setting standard times for tasks.