Which of the following are NOT true? a. Credit cards are the same as debit cards when determining the money supply. b. Credit cards are included in M2 but not M1. c. Credit cards do not impact the demand for money. d. Credit cards are a means of payment. e. All of the above are […]
Date: September 10th, 2020
Why did the money supply fall during the Great Depression? a. The monetary base fell throughout the Great Depression. b. The amount of currency fell during the Great Depression. c. The ratio of currency/deposits fell during the Great Depression. d. The money multipier rose during the Great Depression. e. None of the above. ANSWER […]
Date: September 10th, 2020
What was the Federal Trade Commission (FTC), established in 1914, created to enforce? (a) U.S. foreign trade (b) The maritime code (c) The Interstate Commerce Act (d) The antitrust laws ANSWER (d)
Date: September 10th, 2020
If the monetary base doubles but the ratios of currency/deposit and reserves/deposits remain the same, then: a. The money supply doubles. b. The money supply quandrouples. c. The money supply changes by two times the money multiplier. d. The money supply remains unchanged. ANSWER C
Date: September 10th, 2020
What is the function of the system of federal regulation created by Congress from 1887 until now? (a) To change the outcomes of market decisions (b) To enforce the outcomes of market decisions (c) To replace market allocations with economic planning (d) To enforce the law ANSWER (c)
Date: September 10th, 2020
Up until the early 1880s, there was no federal control over private activities. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
A critical assumption for the simple money multiplier (1/ rrd) to hold is that a. banks do not hold excess reserves. b. the public does not increase their level of currency holdings. c. the required reserve ratio has to be greater than one. d. both a and b. e. all of the above. ANSWER […]
Date: September 10th, 2020
Which transportation industry did government invest most heavily in before 1860? (a) Turnpikes (b) Canals (c) River steamboats (d) Railroads ANSWER (d)
Date: September 10th, 2020
During the great canal-building era, from roughly 1815 to 1843, Hughes and Cain (2011) claim that (a) most canals earned normal profits. (b) no canals earned profits. (c) all canals in the initial period of construction earned normal profits but none did in the later period because of over-construction and competition from the railroads. (d) […]
Date: September 10th, 2020
With the invention of ATM machines, the public now holds less currency. As a result, we would expect to have seen a. both the M1 and the M2 multipliers to increase over time. b. the M1 multiplier to increase while the M2 multiplier to decrease over time. c. the M1 multiplier to decrease while the […]
Date: September 10th, 2020
