Which school of thought believes that expansionary monetary policy has very little or no effect on output? I. Keynesian macroeconomics
II) Great Moderation consensus
A) I only
B) II only
C) I and II
D) neither I nor II

Question

Quizplus · Accepted Answer

Keynesian macroeconomics believes that expansionary monetary policy can have a significant effect on output. The Great Moderation consensus, on the other hand, is a term used to describe the period of relatively stable economic growth and low inflation in the 1990s and early 2000s and does not necessarily imply a specific belief about the effectiveness of monetary policy on output.

Which School of Thought Believes That Expansionary Monetary Policy Has