To maintain a fixed exchange rate, when the exchange rate moves above the target level, the central bank must a. sell foreign currency from reserves. b. buy foreign currency. c. raise taxes. d. raise government spending. e. pass a law that increases the exchange rate. ANSWER B
Date: September 10th, 2020
Unlike the steel industry, the automobile industry (a) became more concentrated. (b) became less concentrated. (c) remained the same in terms of concentration. (d) constantly fluctuated in terms of concentration. ANSWER (b)
Date: September 10th, 2020
During the period of industrialization in the U.S., real income in the agricultural sector fell. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
According to the monetarists, the rise in (M1) velocity in the mid-1990s can be attributed to a. changes in the type of bank deposits that are available to the public. b. new legal ceilings imposed on the deposit rates financial institutions are permitted to pay depositors. c. the phasing out of legal ceilings on the […]
Date: September 10th, 2020
Which of the following statements is correct with respect to endogenous growth models? a. Changes in government policy that affect savings and investment rates can increase levels of output in the long-run. b. Changes in government policy that affect savings and investment rates can increase the growth rate of output in the long-run. c. Long-run […]
Date: September 10th, 2020
The Constitution created an environment conducive to economic growth and development because the federal government could constitutionally do all of the following except (a) Levy uniform taxes (b) Coin money and regulate its value (c) Regulate commerce, thus prohibiting states from erecting barriers to the interstate movement of goods (d) Set “fair” prices on the […]
Date: September 10th, 2020
The implementation of new technology can be quick throughout the world if (a) patent rights are leased and purchased. (b) unions are strong. (c) economies are closed to foreign competition. (d) tariffs are placed on those imported goods and services benefiting from the technological advancements in the rest of the world. ANSWER (a)
Date: September 10th, 2020
Within a system of perfectly flexible exchange rates, an decrease in the United States demand for imports would result in a a. rise in the exchange rate. b. fall in the exchange rate. c. balance of payments deficit. d. balance of payments surplus. ANSWER B
Date: September 10th, 2020
Most new settlement in the West came from homesteads. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The market for U.S. cars was impacted significantly by consumers’ options to buy which of the following? (a) Used cars (b) New cars produced by U.S. producers (c) New cars produced by foreign producers (d) All of the above ANSWER (d)
Date: September 10th, 2020
