A Criticism of the Monetarist Autonomous Spending Variable Is That

question 2

Multiple Choice

A criticism of the monetarist autonomous spending variable is that ________.

• A) some types of autonomous spending do not affect aggregate demand
• B) some types of autonomous spending affect aggregate demand before the spending occurs
• C) some types of autonomous spending affect aggregate demand only long after they occur
• D) Keynesians do not think that autonomous spending affects aggregate demand

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Definitions:

Express Authority

The explicit power given by a party to someone, allowing them to act on the party's behalf, often found in legal and organizational contexts.

Implied Authority

Authority of an agent that is not explicitly stated but is implied by the agent's actions or the circumstances of the task.

Terminate

To bring something to an end or conclude its operation.

Agency Relationship

A legal relationship in which one party, the agent, acts on behalf of another party, the principal, with the principal's consent.