the economics of money, banking, and financial markets

815 "

© 2014 Pearson Canada Inc."

57. 
    

    A criticism of the monetarist autonomous spending variable is that ____.
    A) some types of autonomous spending do not affect aggregate demand
    B) some types of autonomous spending affect aggregate demand before the spending occurs
    C) some types of autonomous spending affect aggregate demand only long after they occur
    D) Keynesians do not think that autonomous spending affects aggregate demand
    Answer: B
    Diff: 3 Type: MC Page Ref: 645 - 646
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence

    
    


58. 
    

    One of the best examples of an episode in which a change in monetary policy appears to
    have been an exogenous event is the ____ in reserve requirements in ____.
    A) increase; 1936- 1937
    B) decrease; 1936- 1937
    C) decrease; 1818- 1819
    D) increase; 1818- 1819
    Answer: A
    Diff: 2 Type: MC Page Ref: 645 - 646
    Skill: Applied
    Objective List: 25.1 Express the different types of empirical evidence

    
    


59. 
    

    The monetarist position on the importance of monetary policy is probably best supported by
    ____ evidence.
    A) timing
    B) statistical
    C) historical
    D) structural
    Answer: C
    Diff: 2 Type: MC Page Ref: 645 - 646
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence

    
    


60. 
    

    The monetarist ____ evidence in which declines in money growth are followed by
    recessions provides the strongest support for their position that monetary policy matters.
    A) statistical
    B) historical
    C) timing
    D) structural
    Answer: B
    Diff: 2 Type: MC Page Ref: 649
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence