Over time, the Phillips curve has:
a. remained stable.
b. shifted downward.
c. shifted upward.
d. has become positively sloped.
Question 2President Jackson's reasons for vetoing the recharter of the Second Bank of the United States did not include
a. fears that the bank was nearing insolvency.
b. questions of constitutionality.
c. concerns over foreign ownership.
d. fears that the bank could undo democracy itself.
Question 3When it was introduced in 1958, the Phillips curve presented policymakers with a menu from which they could choose the appropriate:
a. combination of monetary and fiscal policy.
b. combination of inflation and unemployment.
c. level of aggregate money supply.
d. income tax rate.
Question 4__________________ vocally and actively opposed the re-chartering of the Second Bank of the United States.
a. Nicholas Biddle
b. Henry Clay
c. Andrew Jackson
d. Alexander Hamilton
Question 5The Federal Reserves responses to the financial crisis that began in 2007 include:
a. cautious cuts in the Federal funds rate.
b. large expansions of credit.
c. underwriting lending in many markets.
d. All of the above are correct.
e. Only b and c are correct.
Question 6Which of the following antebellum institutions acted most like a central bank?
a. The First Bank of the United States
b. The Second Bank of the United States
c. Banks created by the National Bank Act
d. The U.S. Treasury
Question 7The financial crisis that began in 2007:
a. was predicted in detail by Alan Greenspan and Ben Bernanke.
b. was centered on subprime lending and the complex financial instruments based on subprime loans.
c. was caused by a downturn in the stock market.
d. None of the above are correct.
Question 8Actions by the Second Bank of the United States:
a. reduced the discount rate on state bank notes.
b. increased the discount rate on state bank notes.
c. created inflation.
d. effectively ended the use of state bank notes.
Question 9The housing market of the early to mid-2000s did not feature:
a. teaser rates on home mortgages.
b. a dramatic rise in housing prices.
c. widespread calls to end predatory lending practices.
d. subprime mortgages.
Question 10The reserve ratio of the Second Bank of the United States was ___________ the reserve ratio of most state banks.
a. larger than
b. smaller than
c. about equal to
d. dependent upon
Question 11The economic scenario of the early 2000s did not include:
a. a stock market fall.
b. low interest rates.
c. a strong increase in employment.
d. a fall in real investment.
Question 12The Second Bank of the United States rose to prominence under the leadership of:
a. Alexander Hamilton.
b. Andrew Jackson.
c. Henry Clay.
d. Nicholas Biddle.
Question 13The economic boom of the 1990s was caused in part by:
a. Jimmy Carters efficient administration.
b. sub-prime lending.
c. an investment boom as the use of personal computers and the Internet became ubiquitous.
d. All of the above are correct.
e. Only a and c are correct.
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