Milton Friedman and Others,citing Imperfections and Mistakes in the Administration

question 80

Multiple Choice

Milton Friedman and others,citing imperfections and mistakes in the administration of fiscal policy,argue that government stabilization policies

• A)often destabilize the economy.
• B)are usually in doses too small to correct fluctuations in the economy.
• C)are always for political gain,not economic stability.
• D)always cause inflation.
• E)have no effect on the economy.

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Definitions:

Production

The procedure involved in producing goods and services.

Federal Budget Deficit

The federal budget deficit occurs when the government's expenditures exceed its revenues in a given fiscal year, leading to borrowing or use of reserves.

Sherman Antitrust Act

A United States antitrust law that outlaws all contracts, combinations, and conspiracies that unreasonably restrain interstate and foreign trade.

Monopolies

Market structures characterized by a single seller who has exclusive control over the supply of a good or service, often leading to higher prices and reduced competition.