Which statement is true?

Question

Quizplus · Accepted Answer

The Keynesians argue that government spending can stimulate economic growth by increasing demand, which in turn can lead to increased investment and job creation. This is known as the crowding-in effect. On the other hand, monetarists argue that government spending can crowd out private investment by raising interest rates and reducing the available funds for private investment. This is known as the crowding-out effect. Therefore, the Keynesians are proponents of the crowding-in effect and the monetarists are proponents of the crowding-out effect.

Which Statement Is True