Indicate whether each view follows the traditional (neoclassical) view of money, banking, and capitalist economies, or (post)Keynesian view. The level of investment depends most significantly on the - interest rate Money developed through rational, private actors in an - attempt to economize on transaction costs Money precedes production 1. Traditional (neoclassical) Loans create the money necessary to invest, and therefore to produce and generate an income to deposit into banks. (loans create deposits) 2. (Post) Keynesian The level of investment depends most significantly on - expectations ('animal spirits') Deposits into banks create the funds that get loaned out. - (deposits create loans) Production precedes money

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Indicate whether each view follows the traditional (neoclassical) view of money, banking, and capitalist economies, or the
(post)Keynesian view.
The level of investment depends most significantly on the
- interest rate
Money developed through rational, private actors in an
- attempt to economize on transaction costs
Money precedes production
1. Traditional (neoclassical)
Loans create the money necessary to invest, and therefore
to produce and generate an income to deposit into banks.
(loans create deposits)
2. (Post) Keynesian
The level of investment depends most significantly on
- expectations ('animal spirits')
Deposits into banks create the funds that get loaned out.
- (deposits create loans)
Production precedes money
Transcribed Image Text:Indicate whether each view follows the traditional (neoclassical) view of money, banking, and capitalist economies, or the (post)Keynesian view. The level of investment depends most significantly on the - interest rate Money developed through rational, private actors in an - attempt to economize on transaction costs Money precedes production 1. Traditional (neoclassical) Loans create the money necessary to invest, and therefore to produce and generate an income to deposit into banks. (loans create deposits) 2. (Post) Keynesian The level of investment depends most significantly on - expectations ('animal spirits') Deposits into banks create the funds that get loaned out. - (deposits create loans) Production precedes money
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