True or False? In an assigned reading, MiltonFriedman indicated that he agreed with JohnMaynard Keynes's explanation of the causes ofthe Great Depression.TrueFalseAs discussed in class, which of the following wasargued by monetarists of the 1970s?in a free market economy, central bankscan never effectively manipulate moneysupply, because lending activity is subjectto rapid changesan expansion of the money supply that isless than the growth of output during thesame period will generally result indeflationO effects of changes in money supply areseen in output before they are seen inpricescentral banks should focus on minimizingthe legal interest rates paid to depositors,as ensuring the safety of banks was themost important goal

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True or False? In an assigned reading, Milton Friedman indicated that he agreed with John Maynard Keynes's explanation of the causes of the Great Depression. True False

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 5CQQ

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Question

True or False? In an assigned reading, Milton
Friedman indicated that he agreed with John
Maynard Keynes's explanation of the causes of
the Great Depression.
True
False
As discussed in class, which of the following was
argued by monetarists of the 1970s?
in a free market economy, central banks
can never effectively manipulate money
supply, because lending activity is subject
to rapid changes
an expansion of the money supply that is
less than the growth of output during the
same period will generally result in
deflation
O effects of changes in money supply are
seen in output before they are seen in
prices
central banks should focus on minimizing
the legal interest rates paid to depositors,
as ensuring the safety of banks was the
most important goal

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