Macroeconomics

Which of the following statements is (are) correct? The Federal Reserv

Which of the following statements is (are) correct? The Federal Reserve a. can, over the long run, roughly control the money supply by changing the monetary base to offset any undesirable changes in the money stock as a result of changes in currency holdings or excess reserve holdings. b. controls the money supply better in […]

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Date: September 10th, 2020

If a fear of increased bankruptcies of firms causes banks to increase

If a fear of increased bankruptcies of firms causes banks to increase their reserve to deposit ratio, then a. the money supply and money multiplier will rise. b. the monetary base and the money multiplier will fall. c. there will be no change in the money multiplier, but the money supply will fall. d. the […]

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Date: September 10th, 2020

Creative destruction includes all of the following except (a) The ris

Creative destruction includes all of the following except (a) The rise of the automobile industry at the expense of the carriage industry (b) The rise of the computer industry at the expense of the typewriter industry (c) The destruction of all capital during economic busts (d) There is no except; all of the above are […]

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Date: September 10th, 2020

Special interest groups (such as doctors, teachers, lawyers, health in

Special interest groups (such as doctors, teachers, lawyers, health insurance companies, the automobile industry and others) can best be characterized by which of the following statements? (a) They are constantly working the government to seek rents from policy decisions. (b) They are resistant to change in governmental policies that benefit them at the expense of […]

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Date: September 10th, 2020