Macroeconomics 11th Edition by Stephen Slavin

Exercise 3

Circle the letter that corresponds to the best answer. During a recession, if the money supply were increased ___________.
A) the Keynesians and the classical economists agree that people would probably just hold on to these funds
B) the Keynesians and the classical economists agree that people would spend this money on assets of one kind or another
C) the Keynesians believe people would probably just hold on to these funds, while the classical economists believe people would spend this money on assets of one kind or another