A President who favors the use of government spending and taxes as tools to offset instability in the economy is likely to have advisers who are oriented toward

Question

Quizplus · Accepted Answer

Keynesian economics advocates for the use of government spending and taxation to address economic instability and promote economic growth. This approach is in contrast to Monetarist economics, which emphasizes the control of the money supply by the central bank to stabilize the economy. Rational expectations theory suggests that individuals make rational predictions about future events based on available information, while the policies advocated by Milton Friedman emphasize the importance of free markets and limited government intervention in the economy.

A President Who Favors the Use of Government Spending and Taxes