The money supply is determined a. only by the Fed. b. by the Fed and banks. c. by the Fed, banks, and the public. d. by congress. e. by the President. ANSWER C
Date: September 10th, 2020
Which of the following reduces U.S. potential for economic growth by reducing household incentive to use private property most efficiently and effectively? (a) Personal income taxes (b) Farm subsidies and import tariffs (c) Auto bailouts (d) Regulation in the health care industry ANSWER (a)
Date: September 10th, 2020
Which of the following is an example of external economies? (a) The cost of per unit produced in manufacturing goods falls as the industry size grows. (b) The cost of per unit produced falls as the firm size, not the industry size, grows. (c) The cost of per unit produced in manufacturing goods increases as […]
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
Government regulation in the form of subsidies, tariffs, licensing, and inspections does which of the following? (a) Creates rents for businesses (b) Offers profits to some businesses at the expense of others (c) Encourages the inefficient use of productive resources (d) All of the above ANSWER (d)
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
Legal reserve requirements specify that banks must hold a certain percentage of their deposit liabilities a. in currency only. b. as deposits at regional Federal Reserve Banks only. c. either in currency or as deposits at regional Federal Reserve Banks. d. None of the above ANSWER C
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
If the Fed follows a policy of fixed exchange rates, an undervalued dollar will force the Fed to a. conduct open market purchases. b. raise the discount rate. c. raise the required reserve ratio. d. cut taxes or raise government spending. ANSWER A
Date: September 10th, 2020
Chief Justice John Marshall had a strong conviction that (a) slavery would only work in the South. (b) a country needs a central government with enough power to place in check state and local interests when the development and growth of the country is concerned. (c) strong state banking systems would help the nation’s commerce. […]
Date: September 10th, 2020
