Milton Friedman's Research Concluded That Monetary Policy Impacts

question 40

Multiple Choice

Milton Friedman's research concluded that monetary policy impacts:

• A) interest rates and output.
• B) the business cycle and output.
• C) inflation and the business cycle.
• D) inflation and output.

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Definitions:

Time Inconsistent

When preferences change over time in such a way that what is preferred at one point in time is inconsistent with what is preferred at another time.

Central Bankers

Officials responsible for controlling a country's money supply and monetary policy, often through a central bank.

Policymakers

Individuals or groups responsible for making decisions and guidelines that affect the public policies of a nation.

Skepticism

The attitude of doubting the truth of something, such as claims, statements, or the validity of certain beliefs.