The Monetarist Model Expands the Keynesian Model by Proposing That

question 284

Multiple Choice

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.