According to economist Milton Friedman, a major reason for macroeconomic instability is due to:
A) Tax changes by the Federal government
B) Spending reductions by the Federal government
C) The discretionary monetary policy of the Federal Reserve
D) The issuance of bonds by the U.S. Treasury Department

Question

Quizplus · Accepted Answer

According to Milton Friedman, macroeconomic instability is primarily caused by the discretionary monetary policy of the Federal Reserve. Friedman believed that the Fed's attempts to stabilize the economy through monetary policy often had unintended consequences and ultimately contributed to economic fluctuations. Tax changes, spending reductions, and bond issuance by the Treasury Department may also impact the economy, but they are not considered to be the primary cause of macroeconomic instability according to Friedman's perspective.

According to Economist Milton Friedman, a Major Reason for Macroeconomic