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:

Fiduciary Duty

An obligation to act in the best interest of another party, for instance, the duty a trustee has towards the beneficiaries of the trust.

Indorsee

The person to whom a negotiable instrument (like a check or promissory note) is endorsed or transferred.

Indorser

A person who signs a negotiable instrument, such as a check, over to another party, transferring ownership.

Qualified Indorsement

An endorsement on a negotiable instrument that limits the liability of the indorser or specifies conditions for the payment.