The Monetarist Model Expands the Keynesian Model by Proposing That

question 66

Multiple Choice

The Monetarist model expands the Keynesian model by proposing that

• A)the government should lower taxes promote economic growth.
• B)decreases in the quantity of money lead to higher interest rates.
• C)markets should be left alone to determine the optimal outcome.
• D)decreases in the growth rate of the quantity of money trigger expansions by controlling inflation.
• E)decreases in tax rates generate higher consumption.

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Definitions:

Initiative

The ability to assess and initiate things independently, often leading to the implementation of new plans or strategies.