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During WWII, in germany prisoners-of-war camps, barter economies started by the American and British prisoners flourished. Soon money started being used in these camps by the prisoners. What was used for money?
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Cigaretters
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The U.S. economy has been characterized by business cycles since the Civil War. Bank panics caused many recessions. The final successful attempt to eliminate bank panics came with the enacting of....
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The Federal Deposit Insurance Corporation
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To decrease money supply, the Fed can..._____ the reserve requirement, _____ the discount rate, and ___ bonds
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Increase the reserve requirement, increase the discount rate, and sell bonds
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The federal funds rate is...
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The interest rate that one bank charges another for overnight lending
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The Federal Open Market Committee consists of...
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7 members of the Board of Governors and 5 district presidents
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Many commodities once served as money in different countries at different times. In our class discussions of early commodity money, which of the following was not mentioned as serving as money?tobacco leavescoffee beanssugarsaltDiamondsbeernailsriceoxen
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Coffee beansDiamondsRice
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If the economy is at less than full employment and experiencing deflation, and the fed wants to increase equilibrium income, it should ______ the supply of money, which will ______ interest rates. The change in interest rates will ______ consumption and investment, causing aggregate _____ to ______
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Increase, decrease, increase, demand, increase
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If the economy is at less than full employment and experiencing inflation, and the fed wants to decrease equilibrium income, it should ______ the supply of money, which will ______ interest rates. The change in interest rates will ______ consumption and investment, causing aggregate _____ to ______
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Decrease, increase, decrease, demand, decrease
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The "official" goal of the Federal Reserve's monetary policy is...
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Economic growth with low inflation
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 A decrease in the money supply M1 would cause...A) a movement from B to DB) a movement form A to DC) a movement from B to CD) a movement from B to AE) None |
B) a movement form A to D
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 Suppose major oil-exporting countries restrict oil output, thus increasing the price of oil, and at the same time government spending and the money supply M1 increase. this would be represented by..A) a movement from A to DB) a movement form A to BC) a movement from A to CD) a movement from D to CE) None |
C) a movement from A to C
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 A movement form equilibrium point B to equilibrium point A would not be a result of:A) increase in government spending and lower resources pricesB) technological advances and an increase in M1C) a decrease in production coast and an increase in consumer confidenceD) technological advances and an increase in government spendingE) increase in consumer confidence and a decrease in productivity |
E) increase in consumer confidence and a decrease in productivity
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 A movement form equilibrium point C to equilibrium point B would not be a result of:A) increase in foreign income levelsB) decrease in consumer confidenceC) decrease in government spendingD) increase in income tax ratesE) decrease in the money supply |
A) increase in foreign income levels
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 A significant improvement in technology would be represented by which of the following shifts?A) B to CB) D to AC) D to BD) LRAS1 to LRAS2E) none |
E) none
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The Federal Reserve System was instituted in .....
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1913 by the act of Congress to overcome repeated bank panics in the U.S. economy
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