794 "
© 2014 Pearson Canada Inc."- The nonactivists who opposed the recent fiscal stimulus package argue that ____.
A) fiscal stimulus would take too long to work because of long implementation lags
B) fiscal stimulus might kick in after the economy had already recovered
C) fiscal stimulus could lead to increased volatility in inflation and economic activity
D) all of the above
E) none of the above
Answer: D
Diff: 2 Type: MC Page Ref: 611
Skill: Recall
Objective List: 25.1 Discern between activist and non-activists views on monetary policy
25.3 Inflation: Always and Everywhere a Monetary Phenomenon
The economist who proposed that, "Inflation is always and everywhere a monetary
phenomenon" was ____.
A) John Maynard Keynes
B) John R Hicks
C) Milton Friedman
D) Franco Modigliani
Answer: C
Diff: 2 Type: MC Page Ref: 612
Skill: Recall
Objective List: 26.3 Explain Milton Friedman's famous proposition that "inflation is always and
everywhere a monetary phenomenon"
Complete Milton Friedman's famous proposition: "Inflation is always and everywhere a
____ phenomenon."
A) monetary
B) political
C) policy
D) budgetary
Answer: A
Diff: 2 Type: MC Page Ref: 612
Skill: Recall
Objective List: 26.3 Explain Milton Friedman's famous proposition that "inflation is always and
everywhere a monetary phenomenon"
At first cut, the simple solution to fighting inflation is ____.
A) reducing the growth rate of the money supply
B) limiting the number of terms that politicians can serve in elective office
C) returning the economy to barter by prohibiting the use of fiat money
D) to impose price controls on businesses that attempt to raise prices
Answer: A
Diff: 2 Type: MC Page Ref: 612
Skill: Applied
Objective List: 26.3 Explain Milton Friedman's famous proposition that "inflation is always and
everywhere a monetary phenomenon"