Which of the following is correct? Whenever the monetary authority pegs the interest rate, a. it must be ready to adjust the interest rate on demand. b. the monetary authority must exchange money for bonds on demand. c. it has control of the quantity of money. d. None of the above ANSWER B
Date: September 10th, 2020
If the central bank targets interest rates, then the LM curve is a. vertical. b. horizontal. c. upward sloping. d. downward sloping. ANSWER B
Date: September 10th, 2020
Which of the following statements is (are) correct? During the existence of the Euro (1999-), a. borrowing from abroad financed large excesses of merchandise imports over exports in the U.S. b. the United States has continued to be the world’s largest debtor nation. c. the dollar initially appreciated but then depreciated strongly since 2001 against […]
Date: September 10th, 2020
Assuming a flexible exchange rate, then an expansionary monetary policy in the foreign exchange market will shift a. the demand curve for foreign exchange to the right b. the demand curve for foreign exchange to the right and the supply curve of foreign exchange to the left. c. both the demand curve for foreign exchange […]
Date: September 10th, 2020
Stagflation at the end of the 1970s was marked by increasing inflation and unemployment. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Thomas Jefferson supported the Land Ordinances of 1785 and 1787. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
The steel industry successfully lobbied for protection from foreign competition. Consequently, the steel-producing industries and those industries using steel benefited. Indicate whether the statement is true or false ANSWER False (The steel-using industries lost.)
Date: September 10th, 2020
The Interstate Commerce Commission (ICC) (a) was the first permanent independent federal regulatory agency. (b) was established because, given the interstate nature of railroads, the regulation the public demanded from the states simply passed to the federal government. (c) initially lacked the power to set railroad rates, but its founding marked the beginning of a […]
Date: September 10th, 2020
The statistical discrepancy is a. also known as the “errors and omissions term.” b. the amount that must be added to balance the total balance of payments to make it equal to zero. c. the adjusted amount to balance the capital account. d. the adjusted amount to balance the current account. e. Both a and […]
Date: September 10th, 2020
Evidence in favor the Keynesian model would be that: a. investment is not sensitive to changes in tax rates. b. labor supply is inelastic. c. the aggregate price level is positively correlated with income. d. all of the above. e. none of the above. ANSWER D
Date: September 10th, 2020
