Which of the following is true ?
A) Keynesians advocate increasing the money supply during economic recessions but decreasing the money supply during economic expansions.
B) Monetarists advocate increasing the money supply by a constant rate year after year.
C) Keynesians argue that the crowding-out effect is rather insignificant.
D) Monetarists argue that the crowding-out effect is rather large.
E) All of the above.

Question

Quizplus · Accepted Answer

Keynesians advocate increasing the money supply during economic recessions to stimulate aggregate demand. Monetarists advocate increasing the money supply by a constant rate year after year to control inflation. Keynesians argue that the crowding-out effect is rather insignificant because they believe that fiscal policy is more effective than monetary policy in stimulating aggregate demand. Monetarists argue that the crowding-out effect is rather large because they believe that monetary policy is more effective than fiscal policy in controlling inflation.

Which of the Following Is True