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
Barry Eichengreen (1992) blamed the severity of the worldwide depression from 1929 to 1933 on the countries who abandoned the rules of the gold standard during economic downturns. This abandonment relieved countries from the monetary discipline measures of the gold standard. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The commerce clause strengthened the federal government’s interventionist power in industries operating on a national scale. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The Dred Scott v. Sanford decision of the U.S. Supreme Court in 1857 (a) made all persons born in the U.S. citizens. (b) provided U.S. citizenry to the children of U.S. born slaves. (c) permitted slaves to sue others in courts. (d) prevented slaves from being taken away from their owners without due process. […]
Date: September 10th, 2020
What does Simon Kuznet’s (1958) study on the U.S. economy show? (a) Short swings in the U.S. business cycles but steady, stable growth in Real Gross Domestic Product (b) Immigrants to the U.S. were attracted by the secular increases in U.S. real wages and incomes (c) A decrease, not increase, in net U.S. migration from […]
Date: September 10th, 2020
The idea that hysteresis plays a role in macroeconomics implies that a. monetary policy can have an effect on the natural rate of unemployment. b. workers can overreact to changes in monetary policy. c. stabilization policy is ineffective and counterproductive. d. fiscal policy is ineffective and counterproductive. ANSWER A
Date: September 10th, 2020
Which of the following best describes white servitude? (a) It applied to hired labor. (b) It was more costly than slavery. (c) It bound vagrants and orphans into productive employment. (d) It was pervasive on tobacco, indigo and cotton plantations. ANSWER (d)
Date: September 10th, 2020
From 1860 to 1910, (a) The total population grew faster than the workforce. (b) National income grew faster than did total population. (c) The workday increased. (d) Foreign investment in the U.S. dropped continuously. ANSWER (b)
Date: September 10th, 2020
The tradeoff for monetary policy represented by the Phillips curve is a. lower inflation for lower output. b. lower inflation for higher unemployment. c. lower inflation for higher employment. d. higher expected inflation for higher output. e. none of the above. ANSWER B
Date: September 10th, 2020
