the economics of money, banking, and financial markets

876 $

© 2014 Pearson Canada Inc.$

57. 
    

    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: 27.1A- 11
    Skill: Applied
    Objective List: Appendix: Evaluating Empirical Evidence

    
    


58. 
    

    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: 27.1A- 12
    Skill: Recall
    Objective List: Appendix: Evaluating Empirical Evidence

    
    


59. 
    

    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: 27.1A- 12
    Skill: Recall
    Objective List: Appendix: Evaluating Empirical Evidence

    
    


60. 
    

    As a result of recent empirical research, there has been a convergence of Keynesian and
    monetarist opinion to the view that ____.
    A) money is all that matters
    B) money does matter
    C) money does not matter
    D) fiscal policy is all that matters
    Answer: B
    Diff: 2 Type: MC Page Ref: 27.1A- 11
    Skill: Recall
    Objective List: Appendix: Evaluating Empirical Evidence