Davison Daniel
07/05/2023 · Elementary School
12. Faced with a choice between fiscal and monetary policy to try and increase aggregate demand, Keynes believed that fiscal policy would have more effect. Which of the following was NOT one of his key reasons for holding this belief? A marks B Monetary expansion might have little effect because the demand for money is interest elastic. C If interest rates fell, consumer spending might not rise much, because it depends chiefly on incomes, not on D interest rates.
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The option that is not a key reason for Keynes' belief in fiscal policy is A marks.
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