A Key Issue in the Present Disagreement Between Keynesian and Monetarist

question 215

Multiple Choice

A key issue in the present disagreement between Keynesian and monetarist economists is whether

• A)monetary policy can bring the economy to full employment.
• B)the economy is better off with policy makers adopting a strict rule or using their discretion to set policies.
• C)monetary policy can influence interest rates.
• D)fiscal policy involves the use of taxation.
• E)federal budgets must be financed.