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:

Machiavelli

A Renaissance Italian diplomat, philosopher, and writer, best known for his political treatise, "The Prince," focusing on political power and realism.

The Prince

A political treatise by Niccolò Machiavelli, detailing various political strategies for rulers to maintain power and control.

Self-Interest

The consideration of one's own advantage or benefit, often driving human behavior and decision-making.

Harold Innis

A Canadian professor and scholar known for his contributions to the field of economics and his theories on the societal impacts of communication media.