1. The U.S. economy has never experienced a year of negative economic growth.
True
False
2. In the U.S., the official dates for each phase of a business cycle are determined after the fact by the National Bureau of Economic Research (NBER).
True
False
3. On average, the U.S. economy has grown about 3.19% annually since 1960.
True
False
4. “Crowding out” occurs when government borrowing to finance its debt diverts resources away from the private sector.
True
False
5. In economics, the past is a very poor predictor of the future.
True
False
My answer for 1 - 5 are F,T,T,F,F
6. During inflationary periods, the Federal Reserve should lower the discount rate so that member banks may more easily obtain needed reserves to enable them to increase their loans.
True
False
7. Cost-push inflation is one possible explanation of why inflation and unemployment can occur together.
True
False
8. The money multiplier is derived from the legal reserve requirement.
True
False
9. An underlying cause of inflation is excessive growth in the money supply.
True
False
10. The discount rate is the ratio of demand deposits to reserves that banks have to maintain.
True
False
My answers for 6 - 10 are F,F,T,T,T
Thank You !
True
False
2. In the U.S., the official dates for each phase of a business cycle are determined after the fact by the National Bureau of Economic Research (NBER).
True
False
3. On average, the U.S. economy has grown about 3.19% annually since 1960.
True
False
4. “Crowding out” occurs when government borrowing to finance its debt diverts resources away from the private sector.
True
False
5. In economics, the past is a very poor predictor of the future.
True
False
My answer for 1 - 5 are F,T,T,F,F
6. During inflationary periods, the Federal Reserve should lower the discount rate so that member banks may more easily obtain needed reserves to enable them to increase their loans.
True
False
7. Cost-push inflation is one possible explanation of why inflation and unemployment can occur together.
True
False
8. The money multiplier is derived from the legal reserve requirement.
True
False
9. An underlying cause of inflation is excessive growth in the money supply.
True
False
10. The discount rate is the ratio of demand deposits to reserves that banks have to maintain.
True
False
My answers for 6 - 10 are F,F,T,T,T
Thank You !