Which of the following was NOT a trend during the 1920's?

Group of answer choices

All of the other answers were trends during the 1920's

U.S. banks lent money to recovering nations after WWI

People did not spend more than they made from working.

Stock market investors borrowed money for buying stock.

Flag question: Question 2Question 20.23 pts

True or false: The money supply was increased substantially with loans during the 1920's.

Group of answer choices

True

False

Flag question: Question 3Question 30.25 pts

What made it difficult for people in debt to pay back their loans during the Great Depression was

Group of answer choices

the increase in the value of debt due to deflation.

lower interest rates that hurt saving money.

the loss of assets in the stock market.

the increase in the value of debt due to inflation.

Flag question: Question 4Question 40.19 pts

If the nominal interest rate is 4% and there is a 21% decrease in the general price level, then the real interest rate is ____

Group of answer choices

25%

-25%

17%

-17%

Flag question: Question 5Question 50.2 pts

According to the classical model, the best thing for the government to do when there is a recession is to

Group of answer choices

do nothing

increase government spending

reduce taxes

increase the money supply

Flag question: Question 6Question 60.2 pts

Laissez-faire economics was advocated by

Group of answer choices

neither Keynes nor the classicals.

the classicals, but not by Keynes.

keynes, but not by the classicals.

both Keynes and the classicals.

Flag question: Question 7Question 70.2 pts

The classical macroeconomic model argues that the economy has built-in forces that automatically eliminate unemployment and quickly move the economy to its full employment level of real GDP. Which assumption is critical to this argument?

Group of answer choices

Natural rate of unemployment

None of the choices are correct.

Profit motive

Flexible wages and prices

Rigid wages and prices

Flag question: Question 8Question 80.2 pts

One principle of the classical model is that

Group of answer choices

the money supply must stay constant to eliminate boom and bust cycles.

a top-down approach to the economy is needed.

None of the other answers.

the recovery of the economy usually take a long time.

Flag question: Question 9Question 90.2 pts

The classical model focuses on

Group of answer choices

a shifting of the aggregate demand curve.

both the shifting of the aggregate demand curve and aggregate supply curve.

increasing government spending

a shifting of the aggregate supply curve.

Flag question: Question 10Question 100.2 pts

What will cause the aggregate demand curve to shift to the right?

Group of answer choices

a decrease in inflation

All of the other answers.

a decrease in nominal interest rates.

an increase in household spending

Flag question: Question 11Question 110.25 pts

Concerning the effect of New Deal farm measures, the New Deal _____.

Group of answer choices

helped the farmer to a substantial extent by limiting farm output.

simply failed to help farmers because the farmer's terms of trade did not improve.

helped the farmer to a substantial extent by increasing farm output.

helped the farmer to a limited extent primarily through the stimulation of aggregate demand.

Flag question: Question 12Question 120.25 pts

Which of the following was not a prominent New Deal reform?

Group of answer choices

The gold standard was eliminated.

Separation of commercial banking from investment banking

Implementation of deposit insurance

Monetary policy power was decentralized.

Flag question: Question 13Question 130.25 pts

True or false: the Glass/Steagall Act provides for the automatic increasing of the money supply to a bank when a bank has financial problems.

Group of answer choices

True

False

Flag question: Question 14Question 140.25 pts

The persistence of high unemployment despite New Deal policies _________.

Group of answer choices

was because not enough money was printed to employee people.

was the result of pressures from government to maintain high wages.

businesses outsourced work to foreign workers.

Flag question: Question 15Question 150.25 pts

In which of the following areas were substantial New Deal reforms NOT made?

Group of answer choices

Corporate accounting standards.

The commercial banking system.

The Federal Reserve System.

Securities markets.

Flag question: Question 16Question 160.25 pts

What most accurately describes the implementation of the New Deal?

Group of answer choices

Its major reforms were implemented in the first 100 days of Franklin Roosevelt's Presidency.

Most of the reforms were temporary and were phased out by World War II.

It was implemented in two phases over the course of about eight years.

Flag question: Question 17Question 170.2 pts

True or false: The first stage of the New Deal was to give people relief by subsidizing private industry to hire people.

Group of answer choices

True

False

Flag question: Question 18Question 180.2 pts

True or false: Fannie Mae was a new institution that provided consumers with bank loans.

Group of answer choices

True

False

Flag question: Question 19Question 190.2 pts

True or false: One tool of fiscal policy is the Federal Reserve increasing the money supply.

Group of answer choices

True

False

Flag question: Question 20Question 200.2 pts

True or false: The FDIC was established to discipline banks if they were badly managed.

Group of answer choices

True

False

Flag question: Question 21Question 210.3 pts

In your own words:

To fight the Great Depression, the Roosevelt Administration used their New Deal to heal the economy. It was a top/down approach that involved bigger government to manage the economy.

What would have been one way to recover the economy and help people DURINGthe Great Depression without creating big government with big spending? hint: remember what was the major cause of the Great Depression.

Flag question: Question 22Question 220.3 pts

In your own words:

The farmers struggled throughout the Great Depression more than any other industry.

1. Why did they struggle so much?

2. Which economic concept did the government attempt to implement an economic floor or an economic ceiling for agricultural products?

3. In general, what was one TYPEof program the government set up to help the farmers? In other words, what would these programs do in general? Stay away from giving the names of program. That is not important.