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.

The “gang system” is an example of   a.  specialization and division of labor.   b.  diminishing marginal product.   c.  the envelope theorem.   d.  Gresham’s law.

According to Walton and Rockoff, the primary reason for the demise of the canal system was    a.  excessive reliance on individual entrepreneurs so that a system of canals was never created.   b.  excessive government regulation that kept canal rates and profits too low.    c.  environmental damage from deforestation that left canals flooded at some times and dry at others.   d.  competition from the railroads.