Historians are in general agreement that (a) railroads opened the country and were built at great risk ahead of demand, gambling on the future. (b) railroads sharply cut down transportation costs, linking the country together in all directions and spurring the nation’s growth far in advance of anything that might otherwise have been achieved. (c) […]
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 […]
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 […]
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)
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
Contrary to many researchers’ views, Hurst (1969) claims the government needed private investors to fund internal improvements. Indicate whether the statement is true or false ANSWER TRUE
Even though government-operated firms do not have to make a profit, they usually operate efficiently. Indicate whether the statement is true or false ANSWER FALSE
Up until the early 1880s, there was no federal control over private activities. Indicate whether the statement is true or false ANSWER FALSE
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 […]
Which transportation industry did government invest most heavily in before 1860? (a) Turnpikes (b) Canals (c) River steamboats (d) Railroads ANSWER (d)
