the economics of money, banking, and financial markets

814 "

© 2014 Pearson Canada Inc."

53. 
    

    Timing evidence is valid only if it is known that the first event is ____.
    A) endogenous
    B) exogenous
    C) a leading indicator of the second event
    D) a lagging indicator of the second event
    Answer: B
    Diff: 2 Type: MC Page Ref: 645 - 646
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence

    
    


54. 
    

    Because ____ evidence is of a ____ nature, there is always the possibility of
    reverse causation, in which output growth causes money growth.
    A) historical; structural
    B) statistical; structural
    C) timing; structural
    D) timing; reduced-form
    Answer: D
    Diff: 2 Type: MC Page Ref: 645 - 646
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence

    
    


55. 
    

    If the movements of the level of the money supply and real output are perfectly coordinated
    the growth rate of money ____.
    A) will lead the level of real output
    B) will move in synchronization with the level of real output
    C) will lag the level of real output
    D) can either lead or lag the level of real output
    Answer: A
    Diff: 2 Type: MC Page Ref: 645 - 646
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence

    
    


56. 
    

    The monetarist statistical evidence examines the correlations between both ____ and
    ____ with ____.
    A) money; aggregate spending; the unemployment rate
    B) money; autonomous expenditures; the unemployment rate
    C) money; consumption spending; aggregate spending
    D) money; autonomous expenditures; aggregate spending
    Answer: D
    Diff: 3 Type: MC Page Ref: 645 - 646
    Skill: Recall
    Objective List: 25.1 Express the different types of empirical evidence