The Difference Between the Monetarist and Keynesian Views on Discretionary

question 11

Multiple Choice

The difference between the monetarist and Keynesian views on discretionary monetary policy is that the monetarists

• A)believe monetary policy is a stabilizing force and Keynesians believe it is primarily destabilizing.
• B)Keynesians think that monetary policy is always used effectively.
• C)believe monetary policy is a destabilizing force and Keynesians believe it is potentially stabilizing.
• D)favor "fine tuning" the economy by use of monetary policy while the Keynesians do not.

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The use of statistical methods and mathematical models to predict future outcomes based on historical data and quantitative analysis.

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