Q25. One major difference between Keynesian analysis and classical theory is tha
ID: 1200126 • Letter: Q
Question
Q25. One major difference between Keynesian analysis and classical theory is that the classical theory assumes
a. a market economy
b. an agricultural economy
c. full employment as a norm
d. a constant money supply
Q26. Which of the following tend to be at a disadvantage in periods of rising prices?
a. debtors
b. people with fixed incomes
c. salespeople whose commissions are very susceptible to price changes
d. all of these
Q27. Excess reserves are the amount of money a bank
a. is required to hold against its checkable deposits
b. is required to hold against its checkable deposits and savings accounts
c. has in excess of its required reserves
d. usually holds to be ready to meet unexpected withdrawals
Q28. Money is defined as
a. the currency of a nation
b. anything that is commonly accepted in exchange for other goods and services
c. currency that has been designated as legal tender
d. notes issued by the U. S. Treasury and backed by gold
Q29. If the CPI is 150, the value of the dollar now compared to in the base period is
a. $1. 50
b. $1
c. $0. 67
d. $0. 50
Explanation / Answer
25. The correct answer is option (C). One major difference between Keynesian analysis and classical theory is that the classical theory assumes is full employment as a norm.
26. The correct answer is option (B). The disadvantage in periods of rising prices is people with fixed income.
27. The correct answer is option (A). Excess reserves are the amount of money a bank is required to hold against its checkable deposits.
28. The correct answer is option (B). Money is defined as anything that is commonly accepted in exchange for other goods and services.
29. The correct answer is $0.67. If the CPI is 150, the value of the dollar now compared to in the base period is $0.67.
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