Which of the following threatens the future of the U.S. economy? (a) A strengthening of private property rights (b) Effectively preventing some individuals and organizations from pursuing noncompetitive market legislation (c) Racism, discrimination and sexism (d) Increased private consumption and investment and reduced government expenditures ANSWER (c)
The Bank Act of 1935 restructured the Federal Reserve System (FRS) in which of the following ways? (a) The FRS Board of Governors gained discretionary control over bank reserves and margin requirements for loans against securities. (b) The Governor’s Committee was renamed the Federal Open Market which was comprised of 12 members, 7 of whom […]
Most researchers agree that the New Deal positively impacted (a) employment and overall production. (b) wages, working conditions and working hours. (c) electricity production and use of it as power. (d) all of the above. ANSWER (c)
Which of the following factors have contributed and continue to contribute to long-term economic growth in the U.S.? (a) Individual rights to vote and popular democracy (b) Public and private education (c) Increased labor productivity, capital accumulation and technological change (d) All of the above ANSWER (d)
If the Federal Reserve increases the legal reserve requirement on deposits, a. the money stock will rise and the money multiplier will fall. b. the monetary base will rise and the money multiplier will fall. c. both the monetary base and the money stock will fall. d. neither the monetary base nor the money stock […]
If the Federal Reserve were to simultaneously sell government bonds in the open market and decrease the discount rate, the a. money supply will increase. b. money supply will decline. c. money stock will stay the same. d. two tools will work in opposite directions and the effect on the money supply is uncertain. […]
The cost of output is income to the land, labor, capital and entrepreneurial talent used to produce it. Indicate whether the statement is true or false ANSWER TRUE
If you write a check on your checking account to pay your rent which your landlord deposits in a bank, then a. the monetary base and the money supply will fall. b. the monetary base falls but the money supply remains unchanged. c. there is no change in the monetary base or the money supply. […]
The demand for goods and services decreases with a rise in employment and income. Indicate whether the statement is true or false ANSWER TRUE
With regard to the American Revolution, research suggests that (a) it was not waged against the law but against a particular alien authority. (b) all contracts, respecting property, remained basically unchanged. (c) the basic ideas established in the colonial era remained untouched by the Revolution, apart from the abolition of primogeniture and perpetual entailment. (d) […]
