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Ao9 Ao9
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8 years ago
In the New Keynesian model, the stabilization effects of fiscal and monetary policy are different because
A) the effects on the composition of output are different.
B) monetary policy affects spending on goods indirectly; fiscal policy affects spending directly.
C) monetary policy does not work in a liquidity trap, but fiscal policy does.
D) all of the above.
Textbook 
Macroeconomics

Macroeconomics


Edition: 5th
Author:
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GordisGordis
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8 years ago
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Ao9 Author
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Expert Upwards Arrow Smiling Face with Open Mouth
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