Question 1

Which of the following could cause continually rising prices?

Accepted Answer

A)  a rise in commodity prices 
B)  low interest rates 
C)  increasing demand for exports 
D)  none of the above 
A)  a rise in commodity prices 
B)  low interest rates 
C)  increasing demand for exports 
D)  none of the above

Question 2

Independent central banks are better able to

Accepted Answer

A)  withstand political pressure to monetize debt. 
B)  respond to "high" levels of unemployment with an EMP. 
C)  more credible commitments to stop inflation. 
D)  all of the above 
A)  withstand political pressure to monetize debt. 
B)  respond to "high" levels of unemployment with an EMP. 
C)  more credible commitments to stop inflation. 
D)  all of the above

Question 3

If the President controlled monetary policy, would you expect higher or lower inflation? Why?

Accepted Answer

The President is not as independent as t

Question 4

A primary cause of the depreciation of the Confederate currency was the disruption of international trade with the South.

Accepted Answer

A) True 
 B)False

Question 5

Independent central banks are more likely to monetize government debt.

Accepted Answer

A) True 
 B)False

Question 6

Legislative lags are more of a problem with bailouts than with emergency discount lending.

Accepted Answer

A) True 
 B)False

Question 7

Zimbabwe experienced hyperinflation in 2008.

Accepted Answer

A) True 
 B)False

Question 8

Inflation arising from increased business confidence and investment is an example of

Accepted Answer

A)  demand-pull inflation. 
B)  cost-push inflation. 
C)  both of the above. 
D)  neither of the above. 
A)  demand-pull inflation. 
B)  cost-push inflation. 
C)  both of the above. 
D)  neither of the above.

Question 9

Which of the following are probable causes of the inflation of the Confederate currency during the Civil War?

Accepted Answer

A)  fear that the South would lose the war 
B)  lack of international trade with the South 
C)  excessive money supply growth 
D)  all of the above 
A)  fear that the South would lose the war 
B)  lack of international trade with the South 
C)  excessive money supply growth 
D)  all of the above

Question 10

Governments with low budget deficits and independent central banks are more likely to experience high inflation.

Accepted Answer

A) True 
 B)False

Question 11

An independent central bank is less likely to fund government expenditures by buying bonds.

Accepted Answer

A) True 
 B)False

Question 12

If workers successfully demand higher wages, but monetary policy is not accommodative, then the unemployment rate will _____ in the short run and _____ in the long run.

Accepted Answer

A)  rise, rise 
B)  rise, fall 
C)  fall, rise 
D)  fall, fall 
A)  rise, rise 
B)  rise, fall 
C)  fall, rise 
D)  fall, fall

Question 13

Hyperinflations have always been associated with rapid increases in the money supply.

Accepted Answer

A) True 
 B)False

Question 14

Timing evidence suggests that inflation in the 1960s caused rapid growth in M1.

Accepted Answer

A) True 
 B)False

Question 15

The money supply is different from other economic variables because

Accepted Answer

A)  it never decreases. 
B)  it has no upper limit. 
C)  it is controlled by the government. 
D)  all of the above. 
A)  it never decreases. 
B)  it has no upper limit. 
C)  it is controlled by the government. 
D)  all of the above.

Which of the following could cause continually rising prices?

Independent central banks are better able to

If the President controlled monetary policy, would you expect higher or lower inflation? Why?

A primary cause of the depreciation of the Confederate currency was the disruption of international trade with the South.

Independent central banks are more likely to monetize government debt.

Legislative lags are more of a problem with bailouts than with emergency discount lending.

Zimbabwe experienced hyperinflation in 2008.

Inflation arising from increased business confidence and investment is an example of

Which of the following are probable causes of the inflation of the Confederate currency during the Civil War?

Governments with low budget deficits and independent central banks are more likely to experience high inflation.

An independent central bank is less likely to fund government expenditures by buying bonds.

If workers successfully demand higher wages, but monetary policy is not accommodative, then the unemployment rate will _ in the short run and _ in the long run.

Hyperinflations have always been associated with rapid increases in the money supply.

Timing evidence suggests that inflation in the 1960s caused rapid growth in M1.

The money supply is different from other economic variables because

The Financial System

Money

Interest Rates

The Economics of Interest-Rate Fluctuations

The Economics of Interest-Rate Spreads and Yield Curves

Rational Expectations, Efficient Markets, and the Valuation of Corporate Equities

Financial Structure, Transaction Costs, and Asymmetric Information

Bank Management

Innovation and Structure in Banking and Finance

The Economics of Financial Regulation

Financial Derivatives

Financial Crises: Causes and Consequences

Central Bank Form and Function

The Money Supply Process and the Money Multipliers

Monetary Policy Tools

Monetary Policy Targets and Goals

Foreign Exchange

International Monetary Regimes

Money Demand

Is-Lm

Is-Lm in Action

Aggregate Supply and Demand and the Growth Diamond

Monetary Policy Transmission Mechanisms

Rational Expectations Redux: Monetary Policy Implications

Filters

Exam 25: Inflation and Money

Which of the following could cause continually rising prices?

Independent central banks are better able to

If the President controlled monetary policy, would you expect higher or lower inflation? Why?

A primary cause of the depreciation of the Confederate currency was the disruption of international trade with the South.

Independent central banks are more likely to monetize government debt.

Legislative lags are more of a problem with bailouts than with emergency discount lending.

Zimbabwe experienced hyperinflation in 2008.

Inflation arising from increased business confidence and investment is an example of

Which of the following are probable causes of the inflation of the Confederate currency during the Civil War?

Governments with low budget deficits and independent central banks are more likely to experience high inflation.

An independent central bank is less likely to fund government expenditures by buying bonds.

If workers successfully demand higher wages, but monetary policy is not accommodative, then the unemployment rate will _____ in the short run and _____ in the long run.

Hyperinflations have always been associated with rapid increases in the money supply.

Timing evidence suggests that inflation in the 1960s caused rapid growth in M1.

The money supply is different from other economic variables because

The Financial System

Money

Interest Rates

The Economics of Interest-Rate Fluctuations

The Economics of Interest-Rate Spreads and Yield Curves

Rational Expectations, Efficient Markets, and the Valuation of Corporate Equities

Financial Structure, Transaction Costs, and Asymmetric Information

Bank Management

Innovation and Structure in Banking and Finance

The Economics of Financial Regulation

Financial Derivatives

Financial Crises: Causes and Consequences

Central Bank Form and Function

The Money Supply Process and the Money Multipliers

Monetary Policy Tools

Monetary Policy Targets and Goals

Foreign Exchange

International Monetary Regimes

Money Demand

Is-Lm

Is-Lm in Action

Aggregate Supply and Demand and the Growth Diamond

Monetary Policy Transmission Mechanisms

Rational Expectations Redux: Monetary Policy Implications

Filters

If workers successfully demand higher wages, but monetary policy is not accommodative, then the unemployment rate will _ in the short run and _ in the long run.