Which of the macroeconomic schools would likely have written each of the following statements? Statement A: Recent
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Which of the macroeconomic schools would likely have written each of the following statements?
Statement A: “Recent optimism in the investment community leads me to predict an upturn in investment spending that will stimulate the economy.”
Statement B: “The rapid expansion of the money supply will cause rapid inflation.”
Statement C: “Businesses, anticipating that the government will attempt to stimulate aggregate spending, are prepared to raise prices. This will have the effect of neutralizing the impact of the government’s stimulus package on the economy.”
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