Milton Friedman would eliminate the destabilizing effect of the Federal Reserve's monetary policy by
A. eliminating the Federal Reserve.
B. eliminating the Federal Reserve's right to carry out open-market operations.
C. removing the Federal Reserve's political independence.
D. requiring that the Federal Reserve choose a monetary aggregate and increase it at a fixed percentage rate each year.
Answer: D
You might also like to view...
The classical economists believed that if the quantity of money doubled
A) output would double. B) prices would fall. C) prices would double. D) prices would remain constant.
According to the above table, at a price of $8 per unit, other things constant
A. a surplus of 100 units will exist. B. there will be no tendency for the market to approach an equilibrium. C. a shortage of 80 units will exist. D. consumers will continue to bid prices upward.
Which of the following will increase macroeconomic equilibrium real gross domestic product?
A. a decrease in taxes B. an increase in input prices C. a decrease in government spending D. a decrease in productivity
The price elasticity of demand for labor will be greater, the
A) greater is the price elasticity of demand for the final product. B) more difficult it is to employ substitute inputs in production. C) smaller is the proportion of wage costs in the total cost of production. D) shorter is the time period under examination.