13
practice testMultiple Choice

Practice Test

Question 13 • Economics

Which best describes a difference between the views of Milton Friedman and John Maynard Keynes on the economy?

Answer
A
Friedman said that fiscal policy should be used to influence aggregate demand, while Keynes believed the best approach was monetary policy.
B
Friedman said that monetary policy should be used to influence aggregate demand, while Keynes believed the best approach was fiscal policy.
C
Keynes believed the economy was too complicated to think of aggregates, while Friedman said higher aggregate demand could solve issues.
D
Keynes believed in little government intervention in the economy, while Friedman said government should play an active role.
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