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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