CFA Practice Question

CFA Practice Question

The government increasing government spending (like the U.S. government did in 2009) to prevent an recession would be most supported by which model:
A. Rational Expectations
B. Keynesian
C. Monetarist
Explanation: Keynesians believe that increasing government expenditure would have a multiplier effect.

User Contributed Comments 1

User Comment
Mikehuynh Rational => no government interference
Keynesian => govt spending
Monetarist => money supply
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