In the Keynesian model with a fixed price level and a fixed money wage, an increase in the money supply will cause a. output to fall and interest rates to fall. b. output to remain unchanged. c. output to rise and the price level to fall. d. output to rise and interest rates to fall. […]
Date: September 10th, 2020
While deficits in the United States through the 1970s, 1980s and early 1990s were high relative to our historical peacetime experience, they a. were been below average for large industrial countries. b. were above average when compared to other large industrial countries. c. were about average for large industrial countries. d. were the lowest when […]
Date: September 10th, 2020
Placing restrictions on business opportunities through government licensing and other controls (a) is not allowed now and never has been in American history. (b) is not allowed now but was provided for by the Constitution and allowed until the 20th century. (c) is allowed now but was not allowed during the colonial period nor in […]
Date: September 10th, 2020
During the antebellum period, most international payments were made by (a) shipping specie. (b) bills of exchange. (c) credit extended by private banks in the U.S. (d) all of the above. ANSWER (b)
Date: September 10th, 2020
The labor movement has been largely an economic movement, not a political phenomenon. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The Economic Act of 1946 allowed the federal government to use discretionary fiscal policy to pursue economic prosperity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
During the international crises of 1837 and 1857, (a) the U.S. and England were connected financially. (b) the British were pursuing heavy internal improvements. (c) the U.S. was in the midst of heavy industrial expansion. (d) all of the above were true. ANSWER (a)
Date: September 10th, 2020
If the Federal Reserve increases the money supply at the same time as an expansionary fiscal policy drives up budget deficits, we would expect to see income _____ and interest rates ____. a. changes be indeterminate; fall b. fall; fall c. rise; fall. d. rise; changes be indeterminate e. none of the above. ANSWER […]
Date: September 10th, 2020
Given the production function Y = A and fixed values for the saving rate and depreciation, if productivity is growing at an average rate of three percent, and the labor input grows at two percent, there is a unique growth rate of capital that is sustainable. That is, if the growth rate of capital is […]
Date: September 10th, 2020
In the classical system, the quantity of money a. determines the price level and, for a given real income, the level of nominal income. b. does not affect the equilibrium values of output, employment, and the interest rate. c. affects the equilibrium values of output, employment, and the interest rate. d. Both a and b […]
Date: September 10th, 2020
