According to Figure 7-1, a decrease in the money stock a. lowers the interest rate to r1. b. raises the interest rate to r2. c. leaves the interest rate at r0. d. None of the above ANSWER B
Date: September 10th, 2020
Assume that the money stock is the intermediate target and money demand is totally interest- inelastic. Then, the a. LM schedule will be horizontal. b. LM curve schedule would be vertical. c. IS curve would be horizontal. d. None of the above ANSWER B
Date: September 10th, 2020
Other things the same, in the Solow model in the steady state, a higher rate of population growth ________ the level of output per worker. A) leads to an increase in B) has no long-run effect on C) has an ambiguous effect on D) leads to a decrease in ANSWER D
Date: September 10th, 2020
In real business cycle models and new classical models a. monetary factors are responsible for fluctuations in output and employment. b. changes in unemployment are involuntary. c. markets always clear. d. prices and wages are perfectly flexible. e. none of the above. ANSWER D
Date: September 10th, 2020
The European subjugation or displacement of Native Americans from their lands (a) was justified largely on the grounds that “might makes right.” (b) was justified largely on the grounds of the “divine right of kings.” (c) derived from the Christian belief of a right of conquest over non-Christian people. (d) was none of the above. […]
Date: September 10th, 2020
The McKinley Tariff of 1890 marked the beginning of the American move toward free trade. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Despite the huge increase in American exports of manufactures and the importation of primarily luxury goods in 1880–1910, the American market for American products was still largely self-sufficient. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In general, in the 19th century, America (a) was a low tariff nation because it was believed that free trade brought specialization, efficiency and more rapid economic growth. (b) was a nation that kept its tariffs at about the same levels as England so as not to give the British an advantage. (c) was a […]
Date: September 10th, 2020
Monetarists are in favor of a. inflation targeting. b. interest rate targeting. c. output targeting. d. nominal income targeting. e. money growth targeting. ANSWER E
Date: September 10th, 2020
Discuss the meaning of the phrase of supply-side economics, discussing how it is similar and different from the traditional classical model. Make sure to discuss the role of the Laffer curve in supply-side theory. What will be an ideal response? ANSWER Classical economists did not pay much attention to the supply-side effects of changes […]
Date: September 10th, 2020
