Answer to Question #249519 in Finance for Matome

Question #249519

Using diagrams and examples, compare and contrast the Classical economists’ Quantity Theory and the 

Keynesian’s Liquidity Preference Theory of money demand.



1
Expert's answer
2021-10-10T16:32:32-0400

Classical economics focuses less on utilization of fiscal policy in managing aggregate demand. The theory is based on monetarism, which focuses on controlling supply of money by the monetary policy. However, Keynesian liquidity preference theory highlights the government is entitled to fiscal policy in controlling instincts such as recession.


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS