Question

The quote by Milton Friedman supports his belief that the federal government should A) decrease the role of the private economy. B) increase their participation in fiscal policy. C) increase their participation in monetary policy. D) decrease their participation in monetary policy.


THE ANSWER IS D

Answer 1

Answer:

D) decrease their participation in monetary policy.

Explanation:

Milton Friedman openly stated that he believed the Government has the larger part of the blame when the country fall into depression.

In his View, the Government constantly provided bail out for the companies who didn't manage to gain enough profit.  This create unfair situation for the new businesses who supposedly would win the competition, and many of them are forced to shut down. This, combined with the fact that the Government took out a large chunk of its budget to provide loan for the failing companies, caused a high level of instability in the economy.

Because of this, he believed that The government should decrease their participation in monetary policy.