Which of the following statements would Milton Friedman disagree with?
A)Monetary policy has few short-run effects on the real economy.
B)In the long run, changes in the money supply primarily affect the price level.
C)In practice, there is little scope for using monetary policy actively to smooth out business cycles.
D)The Federal Reserve cannot be relied on to effectively smooth out business cycles.

Question

Quizplus · Accepted Answer

Milton Friedman believed that monetary policy does have significant short-run effects on the real economy, contrary to statement A.

Which of the Following Statements Would Milton Friedman Disagree With