Question

Monetarists argue that the money supply should be expanded at a fairly constant rate rather than being manipulated to combat the business cycle.

True

False

According to Marx, under socialism, the state would be a dictatorship of the proletariat.

True

False

Answer 1

1. true

Monetarism is closely associated with the economist Milton Friedman, who argued, on the basis of the "Quantity Theory of Money," that the government should keep the money supply relatively constant, increasing it slightly every year, mainly to allow the natural economic development. Monetarists believe that velocity (V) is constant, and changes in money supply (M) are the sole determinant of economic growth, a view which serves as a bone of contention for Keynesians. Because of the inflationary consequences that can be triggered by the excessive expansion of the money supply, Friedman, whose work developed monetarism theory, argued that monetary policy should be conducted by controlling the growth rate of the money supply to preserve economic and price stability.

2.false

The socialist revolutionary Joseph Weydemeyer coined the word "proletariat state" which was adopted by Karl Marx and Friedrich Engels in their philosophy and economics. The word "dictatorship" implies that the state establishment has complete control of the means of production. Material development planning will meet the social and economic needs of the population, for example the right to education , health and welfare services, public housing. The rule of the proletariat is, in Marxist theory, a state of affairs in which a socialist faction holds political control. The dictatorship of the proletariat is the transitional stage between a capitalist economy and a communist economy, during which the post-revolutionary state seizes the means of production and demands direct elections on behalf of and within the confines of the ruling proletarian state party. Instituting elected representatives into representative councils of workers who nationalize control of the means of production from private to collective ownership; Throughout this process, the party's administrative organizational structure must be largely decided by the need for firm governance and the exercise of state power to prevent counter-revolution and promote the transition to a lasting command