In the New Monetarist Model,for Financial Liquidity to Affect the Demand

question 42

Multiple Choice

In the New Monetarist Model,for financial liquidity to affect the demand for investments goods requires

• A) deficient financial liquidity.
• B) consumers and firms to be surprised by monetary policy.
• C) adequate financial liquidity.
• D) an initially very high interest rate.
• E) only that consumers and firms behave rationally.

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