Milton friedman led a new economic school of thought called
a) laissez faire.
b) monetarism.
c) price signaling.
d) the invisible hand.

The second alternative is correct (B).

Milton Friedman was the most famous liberal economist of the 20th century, winning the Nobel Prize in Economic Sciences in 1976. He is the author of the famous phrase: there is no free lunch.

Friedaman is considered the father of monetary theory. Studying the American economy, Friedman concluded that the money supply affects short-term production and long-term prices. This is because, in analyzing the role of money in economic cycles, he found that fluctuations in money growth preceded fluctuations in output growth.

Therefore, one of Friedman's greatest contributions was to point out that monetary policy would play a valuable role in the conduct of the economy.

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