Unlike the Federal Reserve Bank of today, the First and Second Banks (a) could create corporations by special franchise. (b) were generally supported by the rest of the banking community. (c) were direct competitors with private business. (d) provided a federal safety fund in times of well banking crisis. ANSWER (c)
Date: September 10th, 2020
Which of the following statements is correct? a. It is monetary policy and not tax policy that influences interest rates. b. Tax reductions play little role in influencing output. c. Marginal tax rates today are lower than they have ever been in U.S. history. d. Budget deficits show little correlation with interest rates. e. None […]
Date: September 10th, 2020
Compared to the fixed-price/fixed-wage model, in the Keynesian model with a flexible price but fixed wage, an increase in the money stock will cause output to rise by a. less while the interest rate will fall by more. b. less and the interest rate to fall by less. c. more but the interest rate to […]
Date: September 10th, 2020
Forcing businesses to divert profits to improve job conditions, increase wages and salaries and broaden benefits fuels animosity toward labor unions. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Under the new Constitution in 1789, the states gained the sovereign power to (a) levy taxes. (b) power and issue money. (c) “regulate” the value of money. (d) create corporations by special franchise. ANSWER (d)
Date: September 10th, 2020
During the Great Depression we observed: a. higher prices. b. higher real wages. c. lower output. d. higher money wages. e. both b and d. ANSWER E
Date: September 10th, 2020
Inflation results (a) when the price of one good or service increases. (b) when too much money is chasing too few goods. (c) when prices, on average, decrease across the economy. (d) when banks decrease lending. ANSWER (b)
Date: September 10th, 2020
Labor unions create a rent when they succeed. This rent forces employers or management to return some of their profits to unionized workers in the form of improved working conditions, health benefits or increased wages. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assuming that, over a given period, the value of transactions in current dollars is $8 trillion and the money stock is $500 billion. What is the transaction velocity of money? a. .0625 b. 12 c. 16 d. None of the above ANSWER C
Date: September 10th, 2020
An increase in price expectations in the Keynesian model will shift a. labor demand and aggregate supply to the left. b. labor demand to the left and aggregate supply to the right.. c. labor demand and aggregate demand to the right. d. labor supply and aggregate supply to the left. e. labor supply to the […]
Date: September 10th, 2020
