Of the three motives for holding money suggested by Keynes, this one he believed to be the most sensitive to interest rates

Keynes reasoned that consumer expenditure is most closely related to THIS

If the Federal Reserve conducts open market ________, the money supply ________, shifting the LM curve to the right, everything else held constant.

Because the quantity theory of money tells us how much money is held for a given amount of aggregate income, it is also a theory of THIS:

The marginal propensity to consume (mpc) can be defined as the fraction of

In the IS/LM model, Expansionary Fiscal Policy pushes this curve to the right

The average number of times that a dollar is spent in buying the total amount of final goods and services produced during a given time period

If the consumption function is expressed as C = a + mpc × YD, then "a" represents THIS

A combination of expansionary monetary and expansionary fiscal policy is expected to have the same effect on ____, but has an unknown combined effect on ____.

(P × Y)/M = _____

Fixed investment plus planned inventory investment equals THIS component of aggregate demand

In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to fall, and the IS curve to shift to the ________, everything else held constan

MV = PY is known as THIS

A fall in inventories is synonymous with ________ investment.

An increase in autonomous consumer expenditure causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant.