Milton Friedman led a new economic school of thought called:

• A. Monetarism
• B. Classical Economics
• C. Keynesianism
• D. Behavioral Economics

Answer: (A)

Verified step by step guidance

1. Identify the key figure mentioned in the problem: Milton Friedman.
2. Recall the economic school of thought associated with Milton Friedman, which emphasizes the role of governments in controlling the amount of money in circulation.
3. Understand that Monetarism is the school of thought that focuses on the importance of monetary policy and money supply in influencing economic activity.
4. Recognize that Classical Economics, Keynesianism, and Behavioral Economics are different schools of thought with distinct principles and are not primarily linked to Milton Friedman.
5. Conclude that the correct answer is Monetarism, as it is the economic school of thought led by Milton Friedman.