QuestionJuly 20, 2025

Which school of macroeconomists thinks the government can significantly increase the velocity of money by the government running large deficits. Keynesians. Neither Keynesians monetarists, nor widgetarians. Widgetarians. Monetarists.

Which school of macroeconomists thinks the government can significantly increase the velocity of money by the government running large deficits. Keynesians. Neither Keynesians monetarists, nor widgetarians. Widgetarians. Monetarists.
Which school of macroeconomists thinks the government can significantly increase the
velocity of money by the government running large deficits.
Keynesians.
Neither Keynesians monetarists, nor widgetarians.
Widgetarians.
Monetarists.

Solution
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Answer

Neither Keynesians, monetarists, nor widgetarians. Explanation 1. Identify the school of thought Monetarists focus on controlling the money supply and believe that fiscal policy, like running large deficits, has limited impact on the velocity of money. Keynesians emphasize fiscal policy but do not specifically claim it significantly increases the velocity of money. Widgetarians are not a recognized school in macroeconomics.

Explanation

1. Identify the school of thought<br /> Monetarists focus on controlling the money supply and believe that fiscal policy, like running large deficits, has limited impact on the velocity of money. Keynesians emphasize fiscal policy but do not specifically claim it significantly increases the velocity of money. Widgetarians are not a recognized school in macroeconomics.
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