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Free market economists Select one: a. believe that the Federal Reserve is the source of economic...

Free market economists Select one: a. believe that the Federal Reserve is the source of economic stability. b. believe in the fundamental stability of the economy. c. believe that government policy can create a stable economy. d. and Keynesians hold the same macroeconomic views.

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Answer #1

Answer — b. (believe in fundamental stability of the economy)

Explanation:- Classical economists ( free market economists) believe in non interference of government or any other agencies in the working of market or economy. They believed that price mechanism works as an automatic stabilizer of the economy if any disturbance in demand or supply occurs.

On the other hand monetaraists believe that market can be stabilised by changing the flow of money in the economy. In Keynesian views timely government intervention is very important to protect the economy from jerks.

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