In the period from 1929 through 1933, there were successive ________ in aggregate demand and ________ in short-run aggregate supply. A) increases; decreases B) decreases; increases C) decreases; no change D) increases; increases ANSWER B
Date: September 10th, 2020
In the monetary small open-economy model, a fixed exchange rate insulates the domestic price level from A) both real and nominal shocks from abroad. B) real shocks from abroad, but not nominal shocks from abroad. C) nominal shocks from abroad, but not from real shocks from abroad. D) neither real nor nominal shocks from abroad. […]
Date: September 10th, 2020
Money is not ________. A) income because the former is a stock measure and the latter a flow B) wealth because the former is generally used to procure the latter C) as inefficient as barter because the latter requires a double coincidence of wants D) all of the above E) none of the above […]
Date: September 10th, 2020
The demand for real money balances ________. A) is downward sloping with respect to prices B) is downward sloping with respect to interest rates C) is downward sloping with respect to income D) all of the above E) none of the above ANSWER B
Date: September 10th, 2020
Money is ________. A) an asset B) a unit of measure C) a tool D) all of the above E) none of the above ANSWER D
Date: September 10th, 2020
The failure of a major financial company is often a trigger for a financial crisis. The main reason for trouble at a single firm to become a crisis for the entire economy is that ________. A) the central bank will suspend operations until the failed firm is restructured B) it is unclear whether the firm’s […]
Date: September 10th, 2020
After 1980, the following is true A) money is a leading variable. B) any lead/lag relationship between money and real GDP is difficult to detect. C) money is a lagging variable. D) money is coincident. ANSWER B
Date: September 10th, 2020
To maintain a fixed exchange rate, authorities A) make laws stipulating the exchange rate. B) modify money supply. C) modify government expenses. D) modify taxes. ANSWER B
Date: September 10th, 2020
For a borrower in a (c,c’) graph, the optimal consumption bundle is A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors. ANSWER B
Date: September 10th, 2020
Prior to World War II, in the United States, financial crises occurred every ________ years or so. A) twenty B) seven C) fifty D) three ANSWER A
Date: September 10th, 2020
