Monetarists and Keynesians ________ on the impact of fiscal policy on the economy.
A) disagree
B) agree
C) have no opinion
D) at times agree and at other times disagree

Question

Quizplus · Accepted Answer

Monetarists and Keynesians have fundamentally different views on how the economy works, so they often disagree on the effectiveness of fiscal policy. Monetarists believe that monetary policy, such as controlling the money supply, is the most effective way to stabilize the economy. Keynesians, on the other hand, believe that government intervention through fiscal policy, such as increasing government spending during a recession, is necessary to stabilize the economy. Therefore, they would disagree on the impact of fiscal policy on the economy.

Monetarists and Keynesians ________ on the Impact of Fiscal Policy