Home / Questions / Movements of real interest rates indicate that, contrary to the early Keynesians policy wa...
Movements of real interest rates indicate that, contrary to the early Keynesians' beliefs, ________ policy was ________ during the Great Depression.
A) fiscal; tight
B) fiscal; easy
C) monetary; tight
D) monetary; easy
33) Periods of price deflation, such as the Great Depression, are characterized by
A) low nominal rates but high real rates of interest.
B) low nominal and real interest rates.
C) real rates of interest lower than the nominal rate of interest.
D) high nominal and real rates of interest.
34) Monetarists contend that
A) monetary policy affects aggregate demand solely through investment.
B) monetary policy may affect aggregate demand through many channels.
C) a weak link between nominal interest rates and investment spending implies monetary policy ineffectiveness.
D) monetary policy affects aggregate demand solely through consumption.
35) In the early 1960s, monetarists used reduced-form timing, statistical, and historical evidence to show that
A) fiscal policy had a strong impact on economic activity.
B) monetary policy had a strong impact on economic activity.
C) monetary policy had a weak impact on economic activity.
D) neither monetary nor fiscal policy had a strong impact on economic activity.
36) In a study published in 1963, Milton Friedman and Anna Schwartz found that in every business cycle they studied over nearly a hundred-year period, the growth rate of the ________ decreased before ________ decreased.
A) money supply; interest rates
B) money supply; output
C) budget deficit; interest rates
D) budget deficit; output
37) Friedman and Schwartz found that the rate of money growth fell prior to business cycle downturns in
A) about three out of every four instances.
B) four out of every five instances.
C) about two out of every three instances.
D) every instance studied.
38) In a study published in 1963, Milton Friedman and Anna Schwartz found that in every business cycle they studied over nearly a hundred-year period,
A) the growth rate of the money supply decreased before output decreased.
B) interest rates decreased before output decreased.
C) the growth rate of federal government spending decreased before output decreased.
D) the growth rate of state and local government spending decreased before output decreased.
39) Timing evidence is valid only if it is known that the first event is
A) endogenous.
B) exogenous.
C) a leading indicator of the second event.
D) a lagging indicator of the second event.
40) Because ________ evidence is of a ________ nature, there is always the possibility of reverse causation, in which output growth causes money growth.
A) historical; structural
B) statistical; structural
C) timing; structural
D) timing; reduced-form
Mar 14 2020 View more View Less
Banger Co. purchased delivery equipment for $56,000 on January 1, 2018. Banger estimated that the delivery equipment would have a life of five years and a $6,000 salvage ...
Jul 19 2021Why is it more difficult to understand the nonequilibrium strengthening treatments?
May 19 2020two conpanies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. The following information for the 2 warehouses is a...
Jan 22 2020Paul recently applied for CFP Circled Latin Capital Letter R Certification. Which of the following would always bar him from certification? Felony conviction for perjury ...
Jun 01 2020Why do car loans get paid off quicker than other loans?
Jun 25 2021be independent Poisson processes with respective parameters λ and µ. Le Y(t) = I) be the random time of the first event in the Y process. Determine Pr{X(T/2) = k) fork...
Aug 04 2020Given the choice between saving for your retirement or saving for your childâs college, most financial planners say you should:A. Save for college; your children will h...
Aug 03 2021You have $102,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 13.5 percent. Stock X has an ...
May 25 2021Please answer the following questions in Excel (answer in one workbook, with separate worksheets for each question):1- Sematech is an all-equity firm that has achieved a ...
Aug 09 2021Which of the following refers to the process that helps new employees adapt to the organization’s culture?(a)Grapevine(b)Orientation(c)Socialization(d)Introduction(e)Training.
Dec 07 2017