The belief that monetary policy can be effective in changing aggregate demand and that interest rates are the critical monetary variable is associated with
A)Modern Keynesians.
B)New classical economists.
C)Monetarists.
D)Supply-siders.

Question

Quizplus · Accepted Answer

The belief that monetary policy can be effective in changing aggregate demand and that interest rates are the critical monetary variable is associated with modern Keynesians. Monetarists also believe in the effectiveness of monetary policy but place less emphasis on interest rates and more on the money supply. New classical economists and supply-siders tend to prioritize the role of fiscal policy over monetary policy.

The Belief That Monetary Policy Can Be Effective in Changing