macroeconomics questions: please help!?
1. The quantity theory of money is a poor predictor of: a) hyperinflation b) large continuous change in the money supply c) small, one time change in the money supply d) b and c e) a and c 2. Which are true about the demand for money in the IS/LM model? a) transactions demand that decreases with increasing GDP b) speculative demand that increases with increasing interest rate c) transactions demand that increases with increasing GDP d) speculative demand that increases with decreasing interest rate e) c and d 3. Coordinated monetary and fiscal policy in Bush's first term was possible because: a) FED and Congress saw the wisdom of working together b) EU worked hard to promote the EURO c) Central banks of East Asian countries stock pilled $ 4. The industry that is most affected by the interest rate is: a) Auto b) Textiles c) Housing d) Electronics 5. Alexander Hamilton's infant industry argument was used: a) successfully by Latin America to substitute for imports b) successfully by Japan to promote exports c) successfully by south korea and north korea to promote exports d) a and b e) a, b, and c 6. The FED can always effect an expansion because: a) the FED can buy government securities at any price b) the FED can verbally convince bank presidents to make loans c) Banks always make new loans d) False statement 7. In a money expansion problem, the FED buys government securities from a bank who then makes a loan. Suppose the money from that loan ends up in a bank in France and the expansion takes place in France. The formula for the US money expansion multiplier is now (it was 10): a) 1 b) 5 c) 8 d) 10
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a e a c e d c
