The Keynesian approach fell out of favor 50 years ago, and now we are in a very different phase of monetary policy with administered rates. However, the Keynesian approach and a regime of administered rates have at least one thing in common. What is it?

Group of answer choices

They are both based on the assumption that changes in the family of interest rates will change aggregate demand (total spending).

They both specify direct targets for M1 growth

They both involve the Fed selling bonds to banks as a way of addressing the problem of unemployment during a recession.

They both are intended to prevent the massive scarring of business bankruptcies during a recession.

They both intend to raise interest rates in an attempt to prevent disintermediation.

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