10. What are the characteristics of Neanderthal Keynesianism?
1. Money does not matter, 2. Real variables can be fine-tuned by fiscal interventions, 3. Values monetary implications of fiscal deficits.
1. Money does not matter, 2. Real variables can be fine-tuned by fiscal interventions, 3. Ignores monetary implications of fiscal deficits.
1. Money does matter, 2. Real variables can be fine-tuned by fiscal interventions, 3. Ignores monetary implications of fiscal deficits.
11. Milton Friedman believed
you can reduce unemployment through becoming more efficient in
you can increase unemployment through becoming more efficent in labour markets
you can reduce unemployment through becoming more efficent in labour markets
you can reduce unemployment through with cheap credit
12. Ms = Md implies
Md = (Y/V)
Md = k Y
Md = (Y/V) = k Y
Ms = (Y/V) = k Y
13. Money is
endogenous
Both
exogenous
neither
14. Who is monetarism not associated with?
Milton Friedman
Margret Thatcher
Keynes
Unemployment
The Political Right
Market oriented economics
Ronald Reagan
15. Friedman: the demand to hold money
other
f {rb, re, (ΔP/P)e, P, W} Y
(ΔP/P)e, P, W Y
f {rb, re, (ΔP/P)e, P, W}
16. Bond prices low
sell - low interest rate
sell - high interest rate
buy - high interest rate
buy - low interest rate
17. Ms = Md
is always right
in equilibrium
isn't right
none
18. an interest rate rise
sell real estate
sell money
sell bonds
sell housing
sell equity
19. The 1981 budget, what happened?
Professor Sir Alan Walters wanted to overturn Keynes orthodoxy by raising taxes in the middle of a serve recession
Professor Sir Alan Walters wanted to overturn Keynes orthodoxy by decrease taxes in the middle of a serve recession, and increase government expenditure
Because inflation was around high, Professor Sir Alan Walters wanted to overturn Keynes orthodoxy by decrease taxes in the middle of a serve recession, and decrease government expenditure
