Answer to Question #178503 in Macroeconomics for BISMARK KWAME

Question

1.      Neutrality of money means that monetary policy can only affect nominal variable in the long run

a)     Yes b) No c) do not answer

1.      According to the Keynesian consumption function, the average propensity to consume is constant a) Yes  b) No  c) Do not answer

2.      Investments are much more volatile than consumer expenditures?

a)     Yes  b) No c) Do not answer

1.      The most important component of the money supply is currency

a)     Yes b)Noc)do not answer

2.      In a small open economy the interest rate cannot deviate from the world interest rate in the long run. A) Yes    b) No c) Do not answer

Answer 1

Neutrality of money means that monetary policy can only affect nominal variable in the long run.

a) Yes

According to the Keynesian consumption function, the average propensity to consume is constant

a) Yes

Investments are much more volatile than consumer expenditures?

a) Yes

The most important component of the money supply is currency

a) Yes

In a small open economy the interest rate cannot deviate from the world interest rate in the long run.

a) Yes