Milton Friedman's assertion that the government abstain from stabilization policy can be supported by

Question

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Milton Friedman believed that market forces were the best mechanism for steering the economy and that government intervention would only create inefficiencies. He argued that the time lags involved in implementing policy and the delayed response of consumers and businesses to policy actions made it difficult for the government to effectively stabilize the economy. Therefore, option D, which states that it takes time for consumers and businesses to react, best supports his assertion.

Milton Friedman's Assertion That the Government Abstain from Stabilization Policy