Which of the following is not a possible source of instability in velocity in the Monetarist model? a. financial innovation. b. changes in monetary policy c. changes in interest rates d. credit cards. ANSWER C
Date: September 10th, 2020
During the 20th century, U.S. death rates (a) exhibited the same cyclical waves as birth rates. (b) fell with advancements in healthcare and medicine. (c) exhibited an upward trend. (d) generally stayed flat. ANSWER (b)
Date: September 10th, 2020
Tobacco could not be grown in England. It could only be produced in the colonial South. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
One important difference between early and later Keynesians is that a. early Keynesians were more skeptical of the use of monetary policy. b. early Keynesians were more skeptical of the use of fiscal policy. c. early Keynesians believed that monetary policy was responsible for the Great Depression. d. early Keynesians thought that fluctuations in investment […]
Date: September 10th, 2020
The Interstate Commerce Commission (ICC) (1887–1995) was the very first attempt by Congress and/or the federal government to regulate the railroads; regulation had previously come solely from the states. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In a system of flexible exchange rates, expansionary monetary policy abroad would induce a. a rise in the U.S. exchange rate. b. a fall in the U.S. rate of exchange. c. a balance of payments surplus for the United States. d. no change in U.S. exchange rates. ANSWER A
Date: September 10th, 2020
Which of the following factors are included in the determination of growth rates of output in the intermediate run? a. Variations in the rates of capital formation. b. Growth in the labor force that results from growth in the working age population as well as changes in labor force participation rates. c. Variations in the […]
Date: September 10th, 2020
The Great Northern railroad was privately managed well by James J. Hill (1889) and never went bankrupt. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The monetarists emphasize the a. importance of fiscal policy for determining GDP. b. the instability of the money supply. c. the stability of velocity. d. need to “fine tune” the level of economic activity. e. both b and c. ANSWER E
Date: September 10th, 2020
With a fixed exchange rate, an increase in the domestic price level will, for a constant foreign price level, a. increase exports and decrease imports. b. make foreign goods relatively more expensive to U.S. citizens but U.S. exports will be relatively cheaper to foreigner buyers. c. increase both exports and imports. d. make foreign goods […]
Date: September 10th, 2020
