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The Difference Between the Monetarist and Keynesian Views on Discretionary

Question 2

Multiple Choice

The difference between the monetarist and Keynesian views on discretionary monetary policy is that the monetarists


A) believe monetary policy is a stabilizing force and Keynesians believe it is primarily destabilizing.
B) Keynesians think that monetary policy is always used effectively.
C) believe monetary policy is a destabilizing force and Keynesians believe it is potentially stabilizing.
D) favor "fine tuning" the economy by use of monetary policy while the Keynesians do not.

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