Which of the Following Statements Would Milton Friedman Agree with Concerning

question 83

Multiple Choice

Which of the following statements would Milton Friedman agree with concerning the conduct of monetary policy?

• A)Information lags are short,enabling the Central Bank to respond quickly to changes in the economy.
• B)There is little uncertainty over the effect of a change in the money supply on the economy.
• C)There are long and variable lags between monetary policy actions and their economic results.
• D)Wage and price adjustments are relatively slow,so changing the money supply will have a minimal impact on the real economy.

Distinguish between short run and long run scenarios in monopolistic competition.

Analyze profit maximization strategies in monopolistic competition.

Recognize the role of product differentiation and non-price competition in monopolistic competition.

Understand the conditions and effects of price discrimination.