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
According to Alfred Chandler (1977), big business could be justified, at least in part, by the ability of large scale enterprises to take advantage of scale economies. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The benefits of urbanization include: crime, pollution, increased taxation and congestion. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Primary assets held by the Federal Reserve are a. loans to commercial banks. b. U.S. government securities. c. Federal Reserve notes. d. reserve deposits by banks. ANSWER B
Date: September 10th, 2020
The Webb-Pomerene Act of 1918 prohibits price fixing and other anticompetitive agreements that pertain solely to goods for export. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Primary liabilities of the Federal Reserve include a. Federal Reserve notes. b. U.S. government securities. c. loans to banks. d. reserve deposits by banks. e. Both a and d ANSWER E
Date: September 10th, 2020
