Santa ECON 2 – Milton Friedman called John M. Keynes
? http://www.youtube…./watch?v=jOO4kPSaD4Y??Milton Friedman called John M. Keynes one of the greatest economists of all times.TrueFalse?Milton Friedman argues that if bank runs start, where depositors are withdrawing money from banks, then the Federal Reserve should:1, raise interest rates to reward depositors for the increased risk2, provide liquidity (cash) to the banks to stop bank runs (through loans to the banks).3, take over management of banks which were experiencing bank runs.4, close the banks experiencing bank runs as these would be the bad and risky banks which should go out of business.?During the Great Depression the U.S. faced an outflow of gold, so the total amount of gold in the United States decreased.TrueFalse?Milton Friedman argued that while the reasoning of Keynes was wrong, the reasoning of his followers was correct.TrueFalse?Friedman believed that if John M. Keynes has not died in 1946, that he would have1, been able to persuade his “disciples” (his followers) not to take policies he advocated for in the 1930s too far in the post war situation.2, agreed with Friedman, that the primary case of the Great Depression was bad monetary policy3, advocated for socialist policies.4, argued for balancing the government’s budget, even in recessions and depressions.
