Which Economist Made the Following Statement: "Every Major Contraction in the U.S

question 203

Multiple Choice

Which economist made the following statement: "Every major contraction in the U.S. economy has either been created or greatly exacerbated by monetary instability. Every major inflation has been caused by monetary expansion."

• A) Milton Friedman
• B) John Maynard Keynes
• C) Adam Smith
• D) Paul Samuelson

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Definitions:

Reserve Requirements

Mandatory regulations set by central banks determining the minimum amount of reserves that must be held by commercial banks, ensuring they have enough cash on hand to meet withdrawal demands.

Monetary Policy

The process by which a central bank or monetary authority manages the money supply and interest rates to achieve economic objectives.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, that borrowers pay to lenders over a specified period.

Money Supply

The sum of all financial resources in the form of cash and deposits in banks present within an economy at a given moment.