The Monetarist model expands the Keynesian model by proposing that
A) decreases in the quantity of money lead to higher interest rates.
B) the government should lower taxes promote economic growth.
C) decreases in tax rates generate higher consumption.
D) decreases in the growth rate of the quantity of money trigger expansions by controlling inflation.
E) markets should be left alone to determine the optimal outcome.
A
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An unintended byproduct of a market exchange that is allocated outside the market system is _____
a. a restrictive covenant b. an externality c. a pollution right d. an external damage
Which of the following positions might be taken by the ruler of a nation practicing mercantilism?
a. support of the merchant marine sector b. support for the elimination of trade barriers such as tariffs c. support for the reduction of government holdings of specie d. discouragement of exploration and colonization e. All of the above.