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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
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
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
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