The belief that expansionary monetary policy is NOT at all helpful to the economy in fighting recessions is attributed to:
A) classical macroeconomics.
B) Keynesian macroeconomics.
C) monetarism.
D) Great Moderation consensus.

Question

Quizplus · Accepted Answer

The belief that expansionary monetary policy is not helpful to fight recessions is a tenet of classical macroeconomics, which holds that the economy is self-correcting and will automatically return to full employment equilibrium in the long run. Classical economists argue that any attempts to manipulate the money supply or interest rates to stimulate economic activity will only lead to inflation and other distortions in the economy.

The Belief That Expansionary Monetary Policy Is NOT at All