Question

Match List-I with List-II:

List-I		List-II
A	Money supply is exogenously given.	I	Post-Keynesian school
B	Money supply is demand driven and credit led.	II	Say’s law
C	Rational expectation.	III	Monetarism
D	Supply creates its own demand	IV	Neo-classical school

Choose the correct answer from the options given below

• (A) - (III), (B) - (II), (C) - (IV), (D) - (II)
• (A) - (IV), (B) - (III), (C) - (II), (D) - (II)
• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (I), (B) - (II), (C) - (IV), (D) - (II)

Hint:

Understand core beliefs of different economic schools of thought.

Answer 1

The Correct Option is D

(A) *Money supply is exogenously determined.* This core tenet of Monetarism asserts its independence from demand.

(B) *Money supply is demand-driven and credit-led.* This view aligns with the Post-Keynesian school regarding money.

(C) *Rational expectation.* A key component of the Non-classical school, it assumes agents rationally anticipate policy effects.

(D) *Supply creates its own demand:* This is Say's Law, a principle of classical economics.

The correct matching is: (A) - (III), (B) - (I), (C) - (IV), (D) - (II). Therefore, the correct answer is (d).