Solved: The figure below shows the behavior of M1 before, during, and after the 2001

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QUESTION:

The figure below shows the behavior of M1 before, during, and after the 2001 recession. What would a classical economist have said about the Fed’s policy?

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QUESTION:

The figure below shows the behavior of M1 before, during, and after the 2001 recession. What would a classical economist have said about the Fed’s policy?

ANSWER:

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Classical economists are the ones who promote a free market economy, where the economy operates without the intervention of the government.

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