Since the 1980s,
a. monetarism reached its peak.
b. the influence of the monetarists and Keynesians both eroded.
c. monetarism re-established itself with a stable money/income relationship.
d. monetarism declined in influence as Keyesian thought overtook it in influence.
Question 2
A piece of evidence in favor the Keynesian model would be that
a. investment is very sensitive to changes in tax rates.
b. changes in aggregate income cause changes in investment, but not vice versa.
c. the aggregate price level is negatively correlated with income.
d. all of the above.
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