Prices rose strongly during the Vietnam War (1964–1974), and only the adroit monetary and fiscal policy management of the Carter administration (1976–1980) managed to get inflation under control. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
A reduction in national savings will a. increase foreign capital flows into the country. b. reduce domestic investment. c. reduce domestic interest rates. d. both a and b. e. none of the above. ANSWER D
Date: September 10th, 2020
Many of the Founding Fathers considered the emancipation of slaves to be (a) a necessary evil in overcoming the British during the war. (b) less important than the issues of whether blacks should be prevented from coming to the United States and whether freed slaves should be deported. (c) paramount in establishing the new nation […]
Date: September 10th, 2020
According to the monetarists, a. stable growth in the money supply is needed for economic stability. b. aggregate demand is unstable, mostly because of unstable investment demand. c. there is a need for fiscal policies to stabilize output. d. stable money growth is not needed for the economy to be stable. ANSWER A
Date: September 10th, 2020
The federal spending policies of the Great Depression were clearly expansionary and helped return the U.S. economy to the low levels of unemployment experienced during the 1920s. Indicate whether the statement is true or false ANSWER False (Expansionary fiscal policy did not succeed on either one of these fronts.)
Date: September 10th, 2020
Endogenous growth theory rejects the assumption of exogenous a. production functions. b. knowledge. c. technology. d. both b and c. d. all of the above. ANSWER D
Date: September 10th, 2020
An exogenous increase in the country’s trade balance shifts the a. IS schedule to the left. b. IS schedule to the right. c. LM schedule to the left. d. LM schedule to the right. ANSWER B
Date: September 10th, 2020
In the monetarist view, the long-run Phillips curve is a. horizontal. b. downward sloping. c. downward sloping but steeper than the short-run curve. d. downward sloping but flatter than the short-run curve. e. none of the above. ANSWER E
Date: September 10th, 2020
Which of the following statements is (are) correct? The Mundell-Fleming model is a. a new closed-economy model. b. implicitly assumes a fixed domestic price level. c. is an open-economy version of the IS-LM model. d. Both b and c ANSWER D
Date: September 10th, 2020
In the last three decades of the 19th century, the long-run supply track of farm prices (a) indicates a decline in farm prices due to a slowly increasing demand and a more rapidly increasing supply. (b) indicates a decline in farm prices due to a slowly increasing supply and a more rapidly increasing demand. (c) […]
Date: September 10th, 2020
