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According to Both Monetarists and Keynesians Which of the Following

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Unimportant in terms of affecting economic activity while monetarists disagree. Demand for money decreases and interests rates decrease b. Pin On Ola Recessions are caused by falls in aggregate demand b. . B The most important cause of demand shocks is changes in supply. Monetarists would argue that in the short run increases in the money supply act to raise both investment and consumption while also increasing the price level. The demand for money decreases and market interest rates decrease. Post-Keynesians on the other hand postulate that money growth is the adjusting variable. 2 when the price level is constant. For both Keynesians and monetarists to predict accurately the effects of a change in the money supply on the price level they need to add ____ to their analysis. According to Keynesians fiscal policies should be applied during recessions in order to bring the economy back to normal. A reduction...
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