Use the following list of modern macroeconomic theories in order to describe the following statement: Discretionary fiscal and monetary policies are effective tools of economic stabilization.
A. Keynesian economics
B. Monetarism
C. The theory of rational expectations
D. New Classical Economics
A. Keynesian economics
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If the source of economic instability is generally variations in spending, then the Fed should
A) buy gold. B) raise taxes. C) set money supply targets. D) print more money.
A normal good is one
A) with a downward sloping demand curve. B) for which demand increases when the price of a substitute rises. C) for which demand increases when income increases. D) none of the above
Which group has the highest poverty rate from among these groups?
A. Children under 18 B. Persons over 65 C. White males D. Members of working class families
Explain what guaranteed price matching means. What are the consequences of such a policy?
What will be an ideal response?