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The Monetarist Model Expands the Keynesian Model by Proposing That

Question 48

Multiple Choice

The Monetarist model expands the Keynesian model by proposing that


A) the government should lower taxes promote economic growth.
B) decreases in the quantity of money lead to higher interest rates.
C) markets should be left alone to determine the optimal outcome.
D) decreases in the growth rate of the quantity of money trigger expansions by controlling inflation.
E) decreases in tax rates generate higher consumption.

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