From 1789 to 1838, state banks (a) served as financial intermediations and paid out paper money to borrowers. (b) were corporations. (c) engaged in agricultural activities. (d) established demand deposits against which checks could be written by the borrower. ANSWER (a)
Date: September 10th, 2020
During Japan’s economic slump in the early 1990s, monetary policy: a. was highly effective at stimulating income. b. was caught in a liquidity trap as a result of high inflation and interest rates. c. was ineffective because of a liquidity trap caused by near zero interest rates. d. was never even attempted. e. was the […]
Date: September 10th, 2020
Ricardian Equivalence theory assumes that ________. A) an anticipated increase in the income of future generations will reduce the amount that is saved today on their behalf B) government spending remains constant C) many people are subject to borrowing constraints D) tax cuts have a positive impact on aggregate supply ANSWER A
Date: September 10th, 2020
The comparative advantage of the South was in (a) small farms producing for the local market. (b) plantation agriculture producing for export. (c) manufacturing. (d) shipbuilding and trades related to shipbuilding. ANSWER (b)
Date: September 10th, 2020
Real business cycle theorists agree with new classical economists that a. agents maximize utility and form expectations rationally. b. the labor market do not clear. c. imperfect information plays a big role in business cycles. d. Both a and c ANSWER A
Date: September 10th, 2020
A tariff is which type of tax? (a) Progressive (b) Regressive (c) Proportional (d) Neutral ANSWER (b)
Date: September 10th, 2020
During World War II, a labor shortage emerged in some markets. New recruits into the civilian labor force included (a) teenage females. (b) married women. (c) retired people 65 years of age or older. (d) all of the above. ANSWER (d)
Date: September 10th, 2020
The evidence with respect to the validity of Ricardian Equivalence ________. A) suggests that it matters little whether government debt is held by the central bank or by the public B) clearly provides support for the argument C) clearly refutes the argument D) is difficult to interpret, since so many factors may affect national saving […]
Date: September 10th, 2020
According to Figure 6.1, the period from 1974 to 1995 is particularly remarkable for the slow growth of ________. A) output per worker B) labor input C) output D) capital input ANSWER A
Date: September 10th, 2020
A current account deficit exists when (a) Government revenue exceeds spending (b) Government spending exceeds revenue (c) Imports exceed exports (d) Exports exceed imports ANSWER (c)
Date: September 10th, 2020
