Question

Arguably the most important issue in US economic history, for current purposes, is how economists have interpreted the Great Depression.

My lecture focused on the conflict between the Monetarists, led by Milton Friedman, and the multi-factorial analysts, generally Keynesians, who argue that even if the Federal Reserve Bank had acted perfectly, there were still many other issues -- trade policy, German default on World War I reparations, the antique adherence to the gold standard, and of course the collapse of agricultural commodities prices (and thus of banks) after the rapid mechanization of farms in the period 1910-1925.

What conclusion do Heilbroner and Singer come to?

a		They generally side with the multi-factorial approach, and have a broad appreciation of Keynesian theory (which focuses on demand) while also acknowledging that the Monetarists are quite correct about the Federal Reserve's missteps.
b		They generally side with the Monetarists, while also citing multiple factors (principally international issues, farm problems, and over-regulation of the financial services sector).
c		Largely ignoring the social structure of accumulation, Heilbroner and Singer emerge in this book as devoted Marxists, with pronounced Malthusian tendencies because of their conclusion that capitalism tends toward entropy.
d		None of the above.

Answer 1

Answer: Part (B) is the correct answer

They generally side with the Monetarists, while also citing multiple factors (principally international issues, farm problems, and over-regulation of the financial services sector).