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AP US Government
Unit 4 – American Political Ideologies and Beliefs
Topic 4.9
How does the monetary policy of the Federal Reserve illustrate aspects of Keynesian economics?
It promotes supply-side economics through tax cuts to stimulate production.
It advocates for deregulation and laissez-faire economic principles.
It uses measures like adjusting interest rates to control money supply and manage economic growth, which aligns with Keynesian emphasis on active government intervention in economy.
It supports neoliberal policies by promoting privatization and reducing public expenditures.
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AP US Government - 4.9 Ideology and Economic Policy
Key terms
Federal Reserve
Keynesian Economics
Monetary Policy
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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