what is the primary driver of business cycles according to monetary theory ?
Homework Answers
Answer:
According to monetary theorists (mainly Hawtrey) the business cycles are purely monetary phenomenon because general demand is itself a monetary phenomenon. Hawtrey advocated that business cycles are the continuous phases of inflation and deflation. According to him, changes in an economy take place due to changes in the flow of money.
Thus, the changes in monetary and credit market conditions is primary driver of business cycles according to monetary theory.
Add Answer to:
what is the primary driver of business cycles according to monetary
theory ?
What is the primary driver of business cycles according to monetary theory? Supply of money Credit...
What is the primary driver of business cycles according to monetary theory? Supply of money Credit cards Aggregate decisions over saving and spending Fluctuations in the supply of money in the economy
What is the primary driver of business cycles according to monetary theory? a. credit cards b. fluctuations in the...
What is the primary driver of business cycles according to monetary theory? a. credit cards b. fluctuations in the supply of money in the economy c. aggregate decisions over saving and spending d. supply of money
10.16 What – according to real business cycle theorists – is the primary cause of cyclical fluctu...
10.16 What – according to real business cycle theorists – is the primary cause of cyclical fluctuations in output over time (i.e., what is the primary cause of business cycles)?
According to the economic theory of mercantilism, what should a country´s primary goal be?
According to the economic theory of mercantilism, what should a country´s primary goal be?
Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle,...
Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle, is the most common source of recession: a decrease in aggregate demand, a decrease in aggregate supply, or both? Which is the most likely component of aggregate demand to start a recession? How does the aggregate demand multiplier influence a recession? is the most common source of recession. According to the mainstream theory of the business cycle, a decrease in The most likely component...
What is monetary neutrality? Using IS-LM framework, argue that why is not neutral according to Keynasian...
What is monetary neutrality? Using IS-LM framework, argue that why is not neutral according to Keynasian theory.
According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are...
According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are O useless in the long run. O useless in the short run O ineffective on the price level O None of these. QUESTION 4 1 points Save According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will: O place downward pressure on prices. O reduce unemployment. O reduce output O reduce the natural rate of unemployment. 1 pointsS...
According to the real business cycle theory 0 A. investment spending by business is the only...
According to the real business cycle theory 0 A. investment spending by business is the only factor that affects changes in real GDP or unemployment O B. only demand-side factors matter in influencing unemployment. ° C. unemployment is fixed at the natural rate and cannot be affected by anything the government does. O D. only supply-side factors matter in influencing unemployment.
Evaluate the protagonists argument against Modern Monetary theory. A review against the idea of Modern Monetary...
Evaluate the protagonists argument against Modern Monetary theory. A review against the idea of Modern Monetary Theory For the 'con' case, the working paper by Sebastian Edwards, 'Modern Monetary Theory: Cautionary Tales from Latin America', published by the Hoover Institution, April 25, 2019. Thank you
Question2 0.5 pts Which of the following is an assumption of New Keynesian theory? O prices...
Question2 0.5 pts Which of the following is an assumption of New Keynesian theory? O prices or wages are sticky (inflexible) money's velocity is stable and predictable technology (supply-side) shocks are the primary cause of business cycles business cycles are caused by a mismatch in timing between savings, investment, and consumption
What is the primary driver of business cycles according to monetary theory? a. credit cards b. fluctuations in the supply of money in the economy c. aggregate decisions over saving and spending d. supply of money
Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle, is the most common source of recession: a decrease in aggregate demand, a decrease in aggregate supply, or both? Which is the most likely component of aggregate demand to start a recession? How does the aggregate demand multiplier influence a recession? is the most common source of recession. According to the mainstream theory of the business cycle, a decrease in The most likely component...
According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are O useless in the long run. O useless in the short run O ineffective on the price level O None of these. QUESTION 4 1 points Save According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will: O place downward pressure on prices. O reduce unemployment. O reduce output O reduce the natural rate of unemployment. 1 pointsS...
According to the real business cycle theory 0 A. investment spending by business is the only factor that affects changes in real GDP or unemployment O B. only demand-side factors matter in influencing unemployment. ° C. unemployment is fixed at the natural rate and cannot be affected by anything the government does. O D. only supply-side factors matter in influencing unemployment.
Evaluate the protagonists argument against Modern Monetary theory. A review against the idea of Modern Monetary Theory For the 'con' case, the working paper by Sebastian Edwards, 'Modern Monetary Theory: Cautionary Tales from Latin America', published by the Hoover Institution, April 25, 2019. Thank you
Question2 0.5 pts Which of the following is an assumption of New Keynesian theory? O prices or wages are sticky (inflexible) money's velocity is stable and predictable technology (supply-side) shocks are the primary cause of business cycles business cycles are caused by a mismatch in timing between savings, investment, and consumption
Most questions answered within 3 hours.
-
what is IoT? How is it being used today? How will it be used in
the...
asked 3 minutes ago -
Please answer the four questions below.
1. If you were going to test a method that...
asked 18 minutes ago -
Provide two or three examples of support he uses to reinforce
his arguments?
The Alienation of...
asked 25 minutes ago -
QUESTION 1
Why do we see terms with multiple names in the database
community?
Consistency is...
asked 20 minutes ago -
In a titration experiment, 11.5 mL of 0.400 M H2SO4 neutralized
48.0 mL of NaOH. What...
asked 24 minutes ago -
A shot-putter throws the shot with a horizontal velocity of 10
m/s and a
vertical velocity...
asked 40 minutes ago -
Mildred sells industrial-sized refrigeration units. Her
prospective buyer's face looks tense, and his forehead is wrinkled....
asked 42 minutes ago -
Clark Heter is an industrial engineer at Lyons Products. He
would like to determine whether there...
asked 1 hour ago -
3. Use a text editor to create a comma-delimited file of user
IDs and passwords. Revise...
asked 1 hour ago -
Jensen and Associates has a projected balance
sheet that includes the following accounts. What is the...
asked 57 minutes ago -
implement a doubly-linked list in C. Each node in the linked list should contain a string,...
asked 1 hour ago -
What are some best practices and things to avoid when developing
a PowerPoint presentation or file
asked 1 hour ago