Keynesians are more likely to propose
A) contractionary monetary policy to eliminate an inflationary gap than expansionary monetary policy to eliminate a recessionary gap.
B) contractionary monetary policy to eliminate a recessionary gap than contractionary monetary policy to eliminate an inflationary gap.
C) expansionary monetary policy to eliminate a recessionary gap than contractionary monetary policy to eliminate an inflationary gap.
D) none of the above; instead,Keynesians are as likely to propose expansionary monetary policy to eliminate a recessionary gap as they are to propose contractionary monetary policy to eliminate an inflationary gap.

Question

Quizplus · Accepted Answer

Keynesians generally believe in using expansionary monetary policy to combat recessions and stimulate economic growth, rather than using contractionary monetary policy, which can exacerbate a recessionary gap. They may also use expansionary policy to combat inflationary gaps, but tend to prioritize addressing recessionary gaps.

Keynesians Are More Likely to Propose