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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 5, Fiscal Policy.

Multiple Choice Questions

1. Which of the following cannot be justified by Friedman for government interventions?
(a) Free speech.
(b) Roads.
(c) Vouchers for education.
(d) Public parks.

2. A common misunderstanding of economic freedom, according to Friedman, is that it emphasizes ______.
(a) Socialism.
(b) Prosperity.
(c) Materialism.
(d) Wealth.

3. A major point for Friedman is that politics and economics are not ______.
(a) Separate.
(b) Together.
(c) Autonomous.
(d) United.

4. In Friedman's analysis, what century is the historical exception to most men living in tyranny, servitude, and misery?
(a) 18th.
(b) 17th.
(c) 19th.
(d) 20th.

5. Which of the following, for Friedman, is the most important factor for the Federal Reserve?
(a) Stability.
(b) Economic growth.
(c) Regulation of the market.
(d) Loans and lending practices.

Short Answer Questions

1. According to Friedman, what is lost when foreign exchange is controlled by the government?

2. A key component of the government spending is the ______.

3. Friedman believes that all of the following are appropriate for fiscal policy except ______.

4. What does Friedman believe coordinates individuals over vast distances and across all belief systems?

5. For Friedman, what is something that when privately owned can be used if the price is right?

(see the answer key)

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