According to Monetarists, the natural rate of unemployment in each country will be determined by the structural characteristics of the a. the productive efficiency of that country. b. relationship between the actual price level and the expected price level. c. the monetary policy of that country. d. Both a and b e. All of the […]
Under perfect capital mobility a. there are no restrictions on buying financial assets, though there may be on buying factories and equipment. b. transactions costs have to be zero. c. differential risk in assets across countries are minimal. d. All of the above e. None of the above ANSWER C
According to the Thomas (1954) analysis, American investment in industrial physical capital was (a) labor-using in upswings of immigration. (b) labor-saving in upswings of immigration. (c) “labor neutral” over the course of immigration. (d) relentlessly labor-saving no matter what. ANSWER (a)
The Great Depression tried and tested the Gold Standard and this standard met the challenge. Indicate whether the statement is true or false ANSWER FALSE
A rightward shift of the BP schedule is the result of a(n) a. increase in the foreign interest rate. b. decrease in the foreign interest rate. c. exogenous fall in export demand. d. increase in import demand. ANSWER B
The term “stagflation” refers to an economy with the simultaneous problems of (a) rising inflation rates and falling unemployment rates. (b) rising deflation and unemployment rates. (c) rising inflation and unemployment rates. (d) falling deflation and unemployment rates. ANSWER (c)
Which of the following was a key factor which pushed the nation close to civil war? (a) The Missouri Compromise of 1820 (b) Dred Scott v. Sanford Supreme Court Case (c) The Tariff of Abominations of 1828 (d) The Supreme Court practice of “judicial instrumentalism,” which the South believed undermined the Constitution ANSWER (b)
The persistent problem of inflation, beginning in the late 1960s, had its causes in all of the following except (a) The full-scale entrance of the United States into the Vietnam War in 1965 (b) “Oil shocks” in the 1970s (c) Rising production costs in almost every sector in the economy due to rising energy costs […]
Which of the following factors might make capital mobility less than perfect? a. Risks due to exchange rate changes b. Differential risk on the assets of different countries c. Technological progress, which improves the quality of information on foreign assets d. both a and b. e. All of the above ANSWER E
Brinley Thomas’ (1954) thesis explains (a) fluctuations in immigration. (b) fluctuations in European domestic investment. (c) fluctuations in European foreign investment. (d) all of the above. ANSWER (d)
