The Major Difference Between the Keynesian Approach and the Monetarist

question 190

Multiple Choice

The major difference between the Keynesian approach and the monetarist approach is that

• A)Keynesian analysis explains an equilibrium condition and monetarism does not.
• B)in Keynesian analysis, money affects the economy by first affecting interest rates; monetarist analysis is not limited to working through interest rates.
• C)monetarism explains an equilibrium condition and Keynesian analysis does not.
• D)there are no differences.

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Definitions:

Sale And Leaseback

A transaction where a company sells an asset and leases it back from the buyer, providing liquidity while retaining the asset's use.

Lessee

A lessee is a person or entity who rents land or property from a lessor under the terms of a lease agreement.

Lessor

The party in a lease agreement who owns the asset and grants its use to another party (the lessee) for a specified period in exchange for payment.

Leveraged Lease

The lessor borrows a portion of the funds needed to buy the equipment to be leased.