Anna Schwatz and Milton Friedman have argued that the Great Depression was caused by   a.  the fall in the stock of money.   b.  the fall in consumer durable spending.   c.  the fall in investment spending.    d.  the increase in nominal wages.

Gradual emancipation laws adopted by some Northern states   a.  used tax revenues to compensate slave owners for the financial loss associated with freeing slaves.   b.  provided for all newborn children of slaves to be freed at birth.   c.  provided for the freedom of female slaves, but not male slaves.   d.  recognized that after age 10 the cost of a slave to the owner was less than the benefit of a slave to the owner.

The Federal Reserve Act   a.  established a clearinghouse system for checks and notes.    b.  allowed only nationally-chartered banks to become members of the Federal Reserve system.   c.  allowed the Fed District Banks to offer commercial loans to private businesses at reduced interest rates.   d.  required that all Fed District Bank directors be associated with the commercial banking industry.

During the Civil War, __________ fell in the North.   a.  nominal wages   b.  real wages   c.  prices   d. inflation

Advertising to differentiate your product most often occurs in what type of industry?   a.  Industries that produce agricultural crops.   b.  Industries with monopolies.   c.  Industries with monopolistic competition.   d.  Perfectly competitive industries. 

Which of the following federal farm programs was successful in reducing agricultural surpluses?   a.  The Agricultural Act of 1948   b.  The Emergency Act of 1978   c.  The Emergency Feed Grain Bill of 1961   d.  The Soil Bank Act of 1956

Which United States President is most closely identified with the Great Depression?   a.  Calvin Coolidge.   b.  Herbert Hoover.    c.  William Mckinley.   d.  Theodore Roosevelt.

The most significant kind of federal subsidy to railroads was   a.  loans from the U.S. government.   b.  reduced corporate income taxes.   c.  land grants.   d.  direct payments based on the number of miles of tracks laid.

Which of the following most accurately describes the “Fisher effect?”    a.  Interest rates increase after inflation and decrease after deflation, but with a long lag.    b.  Interest rates are independent of inflation and deflation.    c.  Interest rates increase after inflation, but are not affected by deflation.    d.  Increasing interest rates precede inflation and decreasing interest rates precede deflation. 

To pay for WW I, the national debt was expanded from ___ percent of GDP at the beginning of the war to ___ percent of GDP by the end of the war.   a.  1; 5   b.  2; 13   c.  3; 32   d.  The national debt did not expand due to reparations payments.