If the demand for money is Md = 100 +.25Y – 100r and then the increase in money demand rises by 100, the LM curve shifts to the a. right by 400. b. right by 100. c. left by 200. d. left by 400. e. none of the above. ANSWER D
Date: September 10th, 2020
A lower interest elasticity of investment demand leads to a a. steeper IS curve. b. flatter IS curve. c. steeper LM curve. d. flatter LM curve. ANSWER A
Date: September 10th, 2020
The Solow model implies that continuous growth in productivity at a rate of one percent will result in continuous growth of output per worker at a rate of 1.43%. Thus, if at a point in time output per worker is 270 and productivity rises by one percent, the resulting level of output per worker is […]
Date: September 10th, 2020
If the increase in government expenditures of World War II (1941–45) is matched against the decrease in private investment and consumption during the same period, it was the end of World War II that officially concluded the depression era, not the start of World War II, according to Robert Higgs (2007). Indicate whether the statement […]
Date: September 10th, 2020
Under the U.S. Constitution, each state gave up its right to issue money, borrow, levy taxes and regulate the value of money on behalf of national efforts. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Under the Articles of Confederation, the Continental Congress permitted each state to issue paper money and borrow on their own to finance expenses related to the American Revolution. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If the quantity of investment has fallen but interest rates have risen, then a. this cannot be explained in the classical model. b. savings fell. c. savings rose. d. investment demand rose. ANSWER B
Date: September 10th, 2020
Robert Higgs and Louis Stettler (1970) find evidence to suggest that colonial couples married at a younger age than those in Europe, thus explaining the relatively high birth rates in colonial America. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Over time, population growth in the different regions of colonial America was consistent and even. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
According to real business cycle theory, an increase in taxes a. would significantly reduce labor supply, increase employment, and decrease output. b. a decline in employment but not in output. c. would significantly reduce labor supply, and decrease employment and output. d. no change in output and employment. ANSWER C
Date: September 10th, 2020
