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 |