The New Deal in U.S. history is that period during the Great Depression in which American “capitalism” is redefined and the role of the federal government in the economy fundamentally changes forever. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Secured property rights provide individuals with incentive to use the resources they own productively because they realize the gains from this use. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The reforms, acts and programs that emerged during the New Deal were dissolved quickly at the end of the Great Depression. On this front, the New Deal command economy was similar to the World War I command economy. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Under perfect capital mobility, fiscal policy has the largest impact on the income under: a. fixed exchange rates. b. floating exchange rates. c. dollarization. d. a currency union. ANSWER A
Date: September 10th, 2020
The federal government incentive to support special-interest groups (steel, auto, drug, environment) at the expense of unorganized, widely dispersed groups (for example, taxpayers or consumers) occurs (a) only when the benefits that accrue to the special-interest group exceed the costs imposed on others. (b) when nonspecial-interest voters are unconcerned or uninformed about the issue, and […]
Date: September 10th, 2020
The research of Ben Bernanke (1983) found the banking system of the 1930s to be fundamentally flawed and unable to serve its function of financial intermediation. Federal help was needed. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Which of the following provides a tool by which you can measure overall price changes paid by representative individuals living in urban households? (a) The GDP Deflator ( NGDP/RGDP 100, expressed as a percentage ) (b) The Producer Price Index (c) The Consumer Price Index (d) The Housing Price Index ANSWER d
Date: September 10th, 2020
Government controls over industry (a) limit overall net industrial growth. (b) help all industries. (c) lower consumer costs in the industries assisted by government. (d) encourage the destruction of inefficient and lagging industries. ANSWER (a)
Date: September 10th, 2020
In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility, an increase in the money supply does all of the following EXCEPT: a. increase interest rates. b. increase income. c. increase the IS curve. d. increase inflation. ANSWER A
Date: September 10th, 2020
A depreciation of the dollar under perfect capital mobility would cause a. the LM curve to shift to the left. b. the LM curve to shift to the right. c. the IS curve to shift to the right. d. the IS curve to shift to the left. e. the BP curve to shift up. […]
Date: September 10th, 2020
