Which of the Following Best Describes the Views of Milton

question 50

Multiple Choice

Which of the following best describes the views of Milton Friedman?

• A) Government is obligated to increase spending when private businesses are unable to stimulate growth.
• B) Government should let the growth in the money supply match the rate of economic growth.
• C) Capitalism promotes inequality that in time will harm the foundations of democratic governance.
• D) The government should enact high tariffs to make non-American goods too expensive to be competitive with American products.
• E) The economy has natural cycles of ups and downs,so government should let the market regulate itself.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and growth over time.

Percentage Change

A mathematical calculation to determine the degree of change over time, expressed as a percentage.

Imports

Goods or services brought into one country from another, contributing to the supply in the domestic market and affecting the nation's trade balance.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to national income.