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The Major Difference Between the Keynesian Approach and the Monetarist

Question 116

Multiple Choice

The major difference between the Keynesian approach and the monetarist approach is that


A) Keynesian analysis explains an equilibrium condition and monetarism does not.
B) in Keynesian analysis, money affects the economy by first affecting interest rates; monetarist analysis is not limited to working through interest rates.
C) monetarism explains an equilibrium condition and Keynesian analysis does not.
D) there are no differences.

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