CFA Practice Question

CFA Practice Question

Which one of the following is incorrect?
A. Monetarists argue that the government (FED) caused the Great Depression by tightening credit at its early stages.
B. Rational Expectations economists argue that the government needed to favor domestic producers by imposition of import tariffs to cure the Great Depression.
C. Keynesians argue that the government cured the Great Depression by increasing spending.
Explanation: Rational Expectations economists certainly do not advocate government intervention in the form of higher taxes has beneficial effects.

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