In the United States there were legal reserve requirements on time and savings deposits during most of the post-World War II period. Therefore, the money multiplier for the M1 definition was a. smaller when time and saving deposits increased. b. smaller when time and saving deposits were assumed to be fixed. c. larger when time […]
Research in history and economic history shows that before 1880, significant federal participation in the markets of the American economy occurred. Indicate whether the statement is true or false ANSWER FALSE
As the transportation system developed in the U.S., urbanization occurred. Indicate whether the statement is true or false ANSWER TRUE
In the pivotal Supreme Court decision Munn v Illinois (1877), the court held that only natural monopolies were subject to federal government regulation. Indicate whether the statement is true or false ANSWER TRUE
Commercialization, market growth and factories emerged in rural areas. Indicate whether the statement is true or false ANSWER FALSE
If the Federal Reserve simultaneously sells government bonds in the open market and raises reserve requirements, the a. money supply will increase. b. money supply will decrease. c. money supply will stay the same. d. two tools will work against one another and the net effect on the money supply is uncertain. ANSWER B
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
The benefits of urbanization include: crime, pollution, increased taxation and congestion. Indicate whether the statement is true or false ANSWER FALSE
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
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
