According to Keynes, Contractionary Monetary Policy

question 263

Multiple Choice

According to Keynes, contractionary monetary policy

• A) impacts the economy by an amount smaller than the change in investment.
• B) impacts the economy by an amount larger than the change in investment.
• C) will have no impact on the equilibrium nominal GDP.
• D) will have no impact on the equilibrium real GDP.

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Definitions:

Fontanels

Soft spots on a baby's skull where the bones have not yet fused together, allowing for growth of the brain.

Periosteum

A dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints.

Articulation

Place where two bones come together; also called joint.

Joint

A point where two or more bones meet in the body, allowing for movement and support.