ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Government interventions takes away economic and political rights.
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Competition keeps unfair practices at bay.
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Self-interest is a motivating force in the economy.
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Government control of the money supply will increase the prices of goods and services. So, the government should NOT control the money supply.
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Detailed explanation-1: -Constant money growth rule: Friedman, who died in 2006, proposed a fixed monetary rule, which states that the Fed should be required to target the growth rate of money to equal the growth rate of real GDP, leaving the price level unchanged.
Detailed explanation-2: -Friedman’s ideas were profoundly influential. Among other things, he argued that free trade, lower taxes on income and capital, and a reduction in the burden of regulation would increase economic growth and improve social well-being.
Detailed explanation-3: -He believed that government intervention did harm, and that the best economy would be a liberal free-market economy, as expressed vibrantly in Capitalism and Freedom (1962).
Detailed explanation-4: -Key Takeaways Monetarism is closely associated with economist Milton Friedman, who argued that the government should keep the money supply fairly steady, expanding it slightly each year mainly to allow for the natural growth of the economy.