1. Monetarism’s view of fiscal policy is:
the best way to “pump up” the economy.
the responsibility of the executive branch instead of the legislative branch.
not really practical during economic recessions.
that is its use should only be when monetary policy has failed.
a random disturbance and only makes things worse.
2. Monetarism’s view of income distribution and governmental inefficiency would lead the reader to conclude that:
a Monetarist would be in favor of eliminating the inheritance tax.
Socialism is more efficient than Capitalism in distributing income equally.
a Monetarist would be in favor of price controls on similar bundles of goods.
inequality resulting from differences in personal capacities was unfair.
all of the above are true.
3. Monetarism’s view of monopoly leads the reader to conclude that he believes:
that businesses should make stockholders a top priority instead of the public.
that businesses should be giving more back to the communities where they are located.
that businesses do not pay a high enough corporate tax rate.
that the government rather than the consumer should hold businesses accountable
that inefficient businesses like monopolies would not exist in a competitive market.
4. Friedman’s view of social welfare measures is that:
they have been beneficial and should be expanded.
they have led to more equality in income distribution.
the measures have been largely ineffective and have led to increased government control.
they are costly in the short run but benefits accrue in the long run.
they should be abolished completely.