Homework SourseAccording to Keynes an increase of the money supply given so
According to Keynes, an increase of the money supply given some expectations will result in:
A- a small reduction in private investment and the real gdp
B-a large reduction in private investment and the real gdp
C-a moderate increase in private investment and the real gdp
D- none of the above
According to Keynes, an increase of the money supply given some expectations will result in:
A- a small reduction in private investment and the real gdp
B-a large reduction in private investment and the real gdp
C-a moderate increase in private investment and the real gdp
D- none of the above
A- a small reduction in private investment and the real gdp
B-a large reduction in private investment and the real gdp
C-a moderate increase in private investment and the real gdp
D- none of the above
Solution
C-a moderram increase in private investment and real GDP. When supply of money increases , availablity of money with people increases and when people have money they will tend to invest the money so investments increases .when investment increases GDp also increases.
