The type of analysis that assumes that money supply growth stimulates the economy primarily by lowering the interest rate and encouraging investment is

Question

Quizplus · Accepted Answer

Keynesian analysis emphasizes the role of aggregate demand in the economy, including how changes in the money supply can affect interest rates and investment, stimulating economic activity. This approach contrasts with classical and other theories that may focus more on supply-side factors or the neutrality of money in the long run.

The Type of Analysis That Assumes That Money Supply Growth