Final Fall 2011 - 1. In a recent Wall Street Journal...

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1. In a recent Wall Street Journal article…Ran Paul advocates the Austrian Theory…according to the Austrian Theory, a. The Fed is responsible for creating bubbles in …markets, like artificially raising interest rates b. bubbles are characteristic feature of market economies c. both d.none 2. Based on your viewing of the youtube video "Quantitative Easing"… From who does the Fed buy government securities a. Buys directly from Goldmen Sachs b. Buys directly from the treasury c. Buys directly from members of the Public d. None of the Above 3. According to Calomiris (Mortgage crisis: Some Inside Views)…there were so many low-doc leases during the recent financial crisis because… a. Greedy CEO's of financial firms b. Pressure from Congress c. Both d. None 4. Which of the following limited the powers of the early Federal… a. Having to obtain a budget from the treasury b. Gold backing the Federal Reserve Notes c. Both a and b. d. None. 5. True or False : According to Meltzer (4 Reasons Keynesaian…Winning) The economy suffers from a liquidity problem. 6. If operation Twist had worked like Burneke intended, it would have a. Raised long-term government bond prizes b. Lowered long-term interest rates c. both d. none 7. Which of the following helps explain why the money supply… even though the Fed has been printing money like crazy? a. The currency to deposit ratio is low b. The excess reserve to deposit ratio is high c. both d. none 8. Which of the following characterizes new fashioned (post-2008)…? a. The reserve requirement plus the excess resrves equal 1 b. money multiplier is greater than one c. a and b d. None.
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9. According to Holl and Winard the Fed can prevent the money supply from exploding as the economy recovers and market interest rates rise by a. Buying government bonds b. Decreasing the interest rates on reserves
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This note was uploaded on 02/12/2012 for the course BT 1003 taught by Professor As during the Spring '11 term at American Jewish University.

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Final Fall 2011 - 1. In a recent Wall Street Journal...

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