What Strict Rule Did Milton Friedman Believe Would Provide for Greater

question 152

Multiple Choice

What strict rule did Milton Friedman believe would provide for greater price stability?

• A) GDP should not go above 5%.
• B) Unemployment should never be above 10%.
• C) Inflation should stay below 3% a year.
• D) Money supply should grow by 3% annually.

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Definitions:

Accurate Interpretation

The process of understanding or explaining the meaning of something in a way that is true to its nature or intent.

Words, Images, Gestures

Components of communication that include verbal language, visual elements, and body movements.

Contextualizing

The process of analyzing or placing information in a context to understand its relevance, meaning, or relationship to other information.

Problematic Ambiguity

The characteristic of a word or expression which can have multiple meanings such that uncertainty about exactly which meaning applies in a given context for a given purpose results in troublesome misunderstandings.