Keynesians Argued That Monetary Policy Would NOT Be Effective If

question 148

Multiple Choice

Keynesians argued that monetary policy would NOT be effective if:

• A) there was a liquidity trap.
• B) the Fed was independent of political pressure.
• C) other countries did not follow monetary policy similar to that of the United States.
• D) no one bought bonds when the Fed conducted open-market operations.

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Definitions:

FIFO

First In, First Out, an inventory valuation method that assumes that the first items placed in inventory are the first sold.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and dividends have been accounted for.