The third monetarist proposition asserts that in the short run, a. changes in money demand are the dominant factor causing cyclical movements in output and employment. b. money supply is only one of many factors resulting in cyclical movements in output and employment. c. money primarily influences the price level and other nominal magnitudes. d. […]
In a system of flexible exchange rates, a reduction in the money supply will cause a. a rise in the value of the dollar relative to foreign currencies. b. a fall in the value of the dollar relative to foreign currencies. c. no change in the value of the dollar relative to foreign currencies. d. […]
Between the 1921 recession and 1929, the U.S. economy was described as healthy. Which of the following changes in economic indicators is correctly stated and supports this claim? (a) Real Gross Domestic Product (RGDP) increased per capita (b) There were increases in real income but they were more unequally distributed (c) Consumer spending on credit […]
Regarding the issue of slavery, the Constitution (a) denounced it as being inconsistent with the rights of man and called for its eventual elimination, though it did not specify clearly how or when this was to be done. (b) gave slavery legitimacy and support. (c) made no mention of slavery, with the hope, apparently, that […]
Robert Solow is one of the developers of a. classical economics. b. the neoclassical growth model. c. real business cycle theory. d. new classical economics. ANSWER B
Under the Bretton Woods system, a. all countries fixed their exchange rate to the price of gold. b. all countries fixed their exchange rate in terms of a quantity of gold. c. all countries fixed their exchange rate to the dollar and the dollar floated. d. the U.S. fixed the dollar to gold and all […]
By comparing the market value of livestock, corn, wheat and oats in 1880 to 1900, one can see that agricultural growth in the South did not occur. Indicate whether the statement is true or false ANSWER FALSE
The monetarists believe that the LM schedule a. and the IS schedule are both steep. b. is flat while the IS schedule is steep. c. and the IS schedule are both quite flat. d. is steep and the IS schedule is relatively flat. ANSWER D
In the Keynesian model, and expected increase in the interest rate a. increases the demand for bonds and the demand for money. b. increases the demand for bonds and the demand for stocks. c. decreases the demand for bonds and increases the demand for money. d. increases the demand for bonds and decreases the demand […]
According to the early Keynesians, a. the money demand function was unstable; the interest elasticity of money demand was extremely high; and, as a consequence, changes in the quantity of money did not have important predictable effects on the level of economic activity. b. the money demand function was stable; the interest elasticity of money […]
