Respuesta :
The Keynesians believe that fiscal policy was more effective than monetary policy.
However, Keynesians remain uncertain of the effectiveness of the monetary policy. They claim that expansionary monetary policies that increase banking system reserves would not have to result in several expansions of the money supply because banks can easily stop lending out their excess reserves.
Keynes suggested that when the economy is booming with low unemployment and strong growth, the government should cut spending and run a surplus to reduce demand and prevent the economy from overheating.
In general, fiscal policy has a higher impact on consumers than monetary policy because it can lead to increased employment and income. Governments drain money from the economy and slow business activity by raising taxes.
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