KEY Exercise Unit VI Name Lab Dav Time Lab Instructor 1 According to the monetarist view of the Quantrty Theory ofMoney Mt V P q what would happen to the general price level if the money supply Ms was increasing less rapidly than real output q was increasing S p e t iL r arnb l5 2 Keynesians believe that a given change in the money supply will result in a smaller decline in interest rates than do the monetarists Use a money supply money demand diagram for the Keynesian vrew and a money supply money demand diagram for the monetarist view to illustrate the Keynesian contention i il A 2 ek Pt tect dt aqnuts urt OL 64 of tulle 3 In Figures VI l and VI 2 what is the marginal propensity to consume MPCX How do you know srhce I PC o 8 tA rA Ay rvvo wel ar r Sl IGyr1w n Ar x I y euJj 3 w LO lo Y x 11 rC e investment spending and the level of national income Use money market investment market and o 8 ASrc lrn M L o i NL I Io s a Ifilt T I p MDM s se Z pk AIt br r A nd 4 65 y rr
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