Why did Keynes prefer Fiscal Policy to Monetary Theory?
How can they work together?
What is the Liquidity Trap for Keynes? Does it apply
to the economy today?
under what conditions is monetary policy most effective? a
liquidity trap
a steep LM and relatively flat IS
a steep IS and relatively flat LM
steep IS and LM
President Franklin D. Roosevelt enacted the New Deal in 1933.
What was this policy?
aggressive fiscal policy designed to provide relief, reform and
recovery from the Great Depression
An act to preserve the laissez-faire approach to government's
role in markets.
a policy designed to reduce competition from foreign
exporters
an offer...
Describe the differences between fiscal policy and monetary
policy. What fiscal and monetary policies might be prescribed for
an economy in a deep recession? Be sure to distinguish between the
monetary and fiscal policy solutions in your answer.