Empirically, there is a close positive relationship between domestic savings and investment. This is consistent with what we should expect to observe in a. a closed economy. b. the Mundell-Flemming model with perfect capital mobility. c. the Mundell-Flemming model with perfect capital mobility and flexible exchange rates. d. the Mundell-Flemming model with perfect capital mobility […]
Implementation of the National Industrial Recovery Act (1933) positively impacted overall industrial production. Indicate whether the statement is true or false ANSWER FALSE
The American birth rate in 1860–1910 (a) was kept high by the tendency of immigrant children to have large families. (b) increased steadily. (c) declined, on average. (d) rose dramatically after the Civil War due to the large numbers of immigrants having children in the U.S. to get U.S. citizenship. ANSWER (c)
The practice of parents giving their children an amount of land similar to what they received from their parents is known as a (a) targeted bequest. (b) strategic bequest. (c) life cycle bequest. (d) investment bequest. ANSWER (a)
The following Phillips curve of would be consistent with the _____ model(s). a. Keynesian. b. monetarist. c. monetarist and classical. d. classical. e. None of the above ANSWER A
Why did high fertility of the early population occur, according to Hughes and Cain (2011)? (a) More than half of the population were at ages where fertility is high—in 1820, for example, the median American was less than 17 years old. (b) A nation composed mainly of farmers and people planning to farm had every […]
Under perfect capital mobility, an increase in world interest rates will a. increase income and reduce domestic interest rates. b. increase income. c. increase income and lead to a balance of payment deficit. d. increase income and lead to a balance of payment surplus. ANSWER B
The National Recovery Administration (NRA) of 1933–35 attempted to restore market competition within U.S. domestic and international markets. Indicate whether the statement is true or false ANSWER FALSE
What was/were the most enduring legacy/legacies of the 1960s according to Hughes and Cain (2011)? (a) Medicare and the War on Poverty (b) The violent antiwar movement (c) The environmental, consumer and women’s movements (d) The black power movement ANSWER (c)
Friedman’s theory of the natural rate of unemployment and output a. indicates the power of the central bank to target levels of unemployment. b. demonstrates the limits to the trade-off between inflation and unemployment. c. is the theoretical foundation for the monetarist belief that, in the long run, the influence of the money stock is […]
