Homework 7

A  The economy is experiencing a rapid rise in the prices of all goods and services

B  Monetary policy cannot be used to help fix the economy as the interest rate is already so low

C  The economy is going great and should carry on without changing any policies at all

D  The Bushovska Administration should do away with deposit insurance as soon as possible

E  None of the above

A  It helped lead to Deposit Insurance which put a stop to bank panics

B  It was worsened because of political infighting within the Federal Reserve

C  It was in part caused by the loss of confidence in the country’s banking system

D  It was a much longer period of economic downturn than previous recessions and depressions

E  It was worsened because President Herbert Hoover’s devotion to free markets meant he did nothing to combat the Depression

A  TRUE

B  FALSE

A  The success of the strike in the steel industry the year before

B  The wages of soldiers at the time were much higher than the market wage

C  The real wages fell that year

D  The unemployment rate was at levels near the Great Depression

E  The nominal wage had not increased

A  Increased economic opportunities for African Americans

B  New taxes

C  High inflation

D  The switch from the US being a command economy before World War 1 to a market economy during World War 1

E  Economic gains in terms of increased exports to Europe

A  To stop investment banking

B  To follow what was suggested in the novel “The Wizard of Oz”

C  To try to prevent bank panics

D  To copy Canada’s banking system

E  To follow the demands of Coxey’s Army

A  It can result in increased unemployment

B  It would benefit borrowers

C  It would cause a decline in the purchasing power of a given loan

D  It would lead to stricter versions of double liability

E  It would lead to the government overprinting their country’s currency

A  The Act had to be interpreted by the Courts

B  The Act said it would punish those who monopolized any part of the trade or commerce among several states

C  The Act was in part supported and pushed by suppliers in the economy’s agricultural sector

D  The Act resulted in a crackdown on many monopolies as it was strictly interpreted and enforced without exception by the Courts

E  The Act was partly due to the rise of large corporations like Standard Oil

A  It persuaded the courts to do away with all monopolies at the end of the 19th century

B  It causes the cost per unit of goods to decrease

C  It can explain at least partly why US firms decreased in size

D  It is not in any way related to continuous flow production

E  It is just another word for trusts

A  FALSE

B  TRUE