Question

21) Which one of the following statements is true? A) In the classical model, the supply of saving is determined by the rate of interest B) In the classical model, the supply of saving is determined by the level of income C) In the Keynesian model, the supply of saving is determined by the level of investment D) In the Keynesian model, the supply of saving is determined by the rate of interest 22) Without Money's important service as a median of exchange we fall into the . which creates inefficiencies and hinders trade due to the necessity of each party simultaneously having what the other wants. Unit of accounting A) C) B) Delivery mechanism D) Median of Exchange Double Incidents of wants 16) Hayek calls the economy intervention to survive and prosper meaning it needs no tinkering and no A) C) A machine B) D) Organic A Chess Board A tree 17) Hayek refers to jobs as a 'means to an end' meaning that: A) important and thus not just any job will create prosperity B) C) D) creates prosperity Jobs in themselves are not what matters rather its what jobs bring that's Job creation is imperative & any job will do, even digging holes to fill them in Government needs to create more jobs to reduce unemployment Jobs are the means of economic prosperity so even the military at wartime

Answer 1

21- Option C

In keynesian model the supply of saving is determined by the level of investment

22 - Option C

Double coincidence of wants

16 - Option A

A machine

17 - Option C

Government needs to create more jobs to reduce prosperity