1. A political platform based on monetarism would advocate:

“rules of law” rather than “discretion of men”.

a more active role for government in the economy.

greater emphasis on reducing the unemployment problem.

the elimination of all multiple choice questions.

all of the above.

2. With regard to unemployment, may monetarists believe:

that most unemployment is involuntary.

that the natural rate of unemployment is low.

that ill-designed government programs can lead to unemployment.

controlled markets can eliminate most labor distribution problems.

all of the above are true.

3. According to “The Power of the Market” what factor “enables people to cooperate peaceful in one phase of their life while each goes about his own business in respect of everything else”?

Output.

Employment.

Prices.

Supply.

Demand.

4. In the Tyranny of Controls chapter Friedman mentions the misconception of “exports      good, imports bad”. This misconception is rooted in the economic        theory of:

New Classical Economics

Monetarism

Keymesian Economics

Reganomics

Mercantilism

5. In Friedman’s opinion, the Federal Reserve System should keep to performing what it was originally designed to do which was:

manipulating the economy by the use of fiscal policy.

stabilizing the economy through the use of monetary policy.

regulate the supply of money by the issuance of more or less currency.

prevent runs on banks during bank panics.

the management of physical assets of all federal banks.