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
Which of the following is not a valid criticism of Fogel’s (1964) methodology in his study of railroads? (a) The canal prices used for 1890 were low. (b) The impact of railroads on financial markets is ignored. (c) The nonpecuniary gains from using railroads could have been considered. (d) The amount of land cultivated would […]
Date: September 10th, 2020
The fall in the money multiplier and money supply during the Great Depression a. suggests that the public but not banks can be a major participant in the money supply process. b. implies that banks but not the public can be a major participant in the money supply process. c. means that neither the banks […]
Date: September 10th, 2020
The organized groups of people who favor government intervention do so at the expense of other groups because even government resources are limited. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following statements is supported by the research of economic historians? (a) Canals and railroads were built with a mixture of private and public enterprise and financing. (b) Canals and railroads were built largely without U.S. government participation. (c) Canals were built with public assistance, but railroads were built with almost no government […]
Date: September 10th, 2020
“Lender of last resort” means that the central bank a. has to lend money to failing banks. b. should lend money to individuals if their bankruptcy would threaten the banking system. c. should lend money to banks that are suffering short-term liquidity shortages. d. should lend money to pay for government deficits. e. None of […]
Date: September 10th, 2020
Interstate Commerce Commission (ICC) Act of 1887 gave the federal government rate-setting powers. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
