70. What conclusion(s) are drawn from the Austrian Business Cycle theory? a. The

Question

70. What conclusion(s) are drawn from the Austrian Business Cycle theory? a. There is a market mechanism that causes inflation. b. There is a market mechanism that causes business cycles. c. Inflation is the real problem that we face, not a symptom. d. All of the above. e. None of the above. 71. As Rothbard explains, with the Bretton Woods system in place: a. Europe and the U.S. were restored to a gold standard. b. foreign countries were allowed to maintain dollar reserves to back their currencies. c. the U.S. refused to sell gold on the market even if the price rose. d. the U.S. redeemed gold for dollars only to foreign central banks at $100 per ounce. e. All of the above. 72. Rothbard believed that an accurate measure of the money supply: a. would include saving accounts in banks. b. would include life insurance surrender values. c. would include money market mutual funds. d. All of the above. e. Only A and B of the above. 73. To restore “sound money” Rothbard argues that: a. we need a combination of gold and silver to back up our currency. b. the job of printing currency should be transferred to the U.S. Mint. c. the Federal Reserve should be abolished. d. FDIC premiums should be increased by between 50% and 100%. e. All of the above. 74. Why does the Fed want to stimulate spending by decreasing interest rates? a. Because they are Keynesians. b. Because they are Monetarists. c. Because they are Austrians. d. Because they are gold bugs. e. None of the above. 75. As a response to the 2001 recession, the Fed lowered the federal funds rate down to a low of about: a. 3% b. 2.5% c. 2% d. 1% e. 0.25% 76. Which of the following financial intermediaries had the highest valued amount of assets when they failed? a. Washington Mutual b. Lehman Brothers c. IndyMac d. WaMu e. Jos. A. Bank 77. As a response to the 2008 recession, the Fed lowered the federal funds rate down to a low of about: a. 3% b. 2.5% c. 2% d. 1% e. 0.25% 78. Since 2009, ___ has grown faster than ___ which has grown faster than ___. a. M2; the CPI; the MB b. M2; the MB; the CPI c. the CPI; the MB; M2 d. the MB; M2; the CPI e. the CPI; M2; the MB 79. From 2008 to 2017, the Fed's holding of mortgage-backed securities went from zero to about: a. $1.7 trillion. b. $2.5 trillion. c. $2.7 trillion. d. $4 trillion. e. None of the above. 80. To deal with a problem of rapidly rising inflation the Fed is likely to have to act in a way that Dr. Foster likened to the: a. Hunger games. b. Ender's gambit. c. Joker policy. d. Texas Hold 'em strategy.

Explanation / Answer

Question 70). Answer. b. There is a market mechanism that causes business cycles

because according to austrian school business cycles is the consequence of excessive growth in bank credit because of low intrest rate in the market.

Question 71). Answer. e. All these are correct referring to situatins after world war II

Question 72). Answer :- Option a). would include saving accounts in banks.

Question 73). Answer :- Option a). we need a combination of gold and silver to back up our currency.

Question 74). Answer :- Option a). Because they are Keynesians.

Question 75). Answer :- Option d). 1 %

Question 76). Answer. b. Lehman Brothers

Lehman brothers aaset value were $691.1 billion

Question 77). Answer.. c. 2%

because in response to recession fed lowered the fedral funds rate to 2%

Question 78). Answer. d. the MB; M2; the CPI

Question 79). Answer. d. $4.trillion

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