From 1860 to 1910, international net capital flow into the U.S. (a) was positive when the U.S. economy expanded. (b) was neutral and not influenced by the U.S. business cycle. (c) was negative when the U.S. economy grew. (d) was positively impacted by U.S. discussions about and actual restrictions on immigration. ANSWER (a)
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 […]
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
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
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)
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
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. […]
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
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
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. […]
