According to Keynesian economists,monetary policy is __________ effective at changing the price level and Real GDP.

Question

Quizplus · Accepted Answer

Keynesian economists believe that monetary policy can be effective in changing the price level and real GDP, but only in certain situations. Specifically, they argue that monetary policy is most effective in stimulating the economy when interest rates are already low and there is excess capacity and unemployment in the economy. In general, Keynesians prefer fiscal policy as a tool for stabilizing the economy, but they do not reject the use of monetary policy altogether. Therefore, the best answer is sometimes.

According to Keynesian Economists,monetary Policy Is __________ Effective at Changing