Economic History Chapter 3

Front 1

The "fed funds rate" is the interest rate that the Federal Reserve charges other central banks for short term loans

Back 1

FALSE

Front 2

If a firm pays its workers an "efficiency wage," the wage received by the workers is greater than the market wage in similar jobs

Back 2

TRUE

Front 3

Union leaders failed to aggressively organize mass production workers in the 1920s

Back 3

TRUE

Front 4

Investment expenditures (I) include purchases of newly-issued stocks and corporate bonds

Back 4

FALSE

Front 5

In the late 1920s, the federal reserve's board allowed hundreds of banks to fail each year, believing that the US banking system would be stronger without these banks

Back 5

TRUE

Front 6

Henry Ford was the first US manufacturer to build a factory that used an assembly line

Back 6

FALSE

Front 7

Under the Bland-Allison Act, the US Treasury was directed to make limited, monthly purchases of silver at the mint ratio of 16:1

Back 7

FALSE

Front 8

During the "Golden Era" of American farming, US farmers experienced increases in income, wealth, and productivity

Back 8

TRUE

Front 9

In 1900, thousands of US farmers gathered in Washington, DC to protest the passage of the Gold Standard Act

Back 9

FALSE

Front 10

The Contraction Act of 1865 led to a sharp decrease in the US price level

Back 10

TRUE

Front 11

In the early 1920s, the price of US farm products rose more slowly than the overall price level

Back 11

FALSE

Front 12

The Coinage Act of 1873 omitted the silver dollar from the list of coins to be minted

Back 12

TRUE

Front 13

According to Rockoff, populists wanted a genuine bimetallic standard in which both gold and silver simultaneously circulated as money

Back 13

TRUE

Front 14

A "yellow dog contract" is a secret arrangement under which a firm hires a private security company to monitor and disrupt union activities

Back 14

FALSE

Front 15

According to Rockoff's interpretation of the Wizard of Oz, Emerald City represents Washington, DC

Back 15

TRUE

Front 16

Supporters of the "Free silver movement" included

Back 16

the democratic party

Front 17

After 1874, the supply of silver ____, causing the market price of silver to become ______ the US mint price of silver

Back 17

increased; less than

Front 18

Following the enactment of the Sherman Silver Purchase Act in 1890,

Back 18

the treasury's gold reserves declined, the treasury's purchases of silver increased, the US maintained a de facto gold standard, and the people who sold silver to the treasury received notes that were legal tender

Front 19

We can use the quantity theory of money to describe the US economy in the years immediately preceding the passage of the Gold Standard Act of 1900. During this time,

Back 19

M increased, P increased, Y increased, V was stable

Front 20

According to US data presented in your text, the volume of both ____ and ____ in circulation increased during the Civil War

Back 20

US notes; national bank notes

Front 21

During the Civil War

Back 21

the dollar depreciated against the british pound

Front 22

In the decade after the civil war, many democrats supported a plan to ____ the price level by _____.

Back 22

decrease; maintaining a stable money supply

Front 23

Holding other things constant, when the Fed buys treasury bonds,

Back 23

interest rates decrease

Front 24

Which of the following is an example of contractionary fiscal policy?

Back 24

a decrease in government spending

Front 25

The 1920s were characterized by large numbers of US bank failures each year, especially among rural banks. These banks were particularly inclined to fail because

Back 25

they had difficulty diversifying their loan portfolios

Front 26

Which of the following accurately reflects Rockoff's interpretation of the Wizard of Oz?

Back 26

The tin woodman represents urban labor

Front 27

According to Rockoff, Republicans in 1896 said that they would reestablish a bimetallic standard if:

Back 27

other developed countries would also agree to adopt bimetallism

Front 28

In US in the 1880s, the money supply grew at an average rate of 7.7% per year, while real output grew at an average rate of 2.7% per year. Rockoff notes that during this same time period

Back 28

velocity fell

Front 29

In "The Wizard of Oz as a Monetary Allegory," Rockoff argues that an increase in the money supply in 1893-1896

Back 29

was an appropriate policy response to the high unemployment at the time

Front 30

According to Rockoff, Marcus Alonzo Hanna

Back 30

advised journalists during the 1896 campaign to visit McKinley on his front porch in Ohio

Front 31

In 1920, US aggregate demand was _____, and the money supply was ______

Back 31

decreasing; also decreasing

Front 32

During WWI, American farmers ______ their output while ______ their level of debt

Back 32

increased; also increasing

Front 33

Between 1922 and 1929, ______ in the money supply was accompanied by ______

Back 33

moderate growth; a fairly stable price level

Front 34

In the 1920s, the federal government attempted to assist US farmers by

Back 34

supporting the creation of cooperative marketing associations

Front 35

Between 1923 and 1929, american (non-farm) labor benefited from all of the following except:

Back 35

enactment of federal minimum wage legislation

Front 36

Decreases in marginal tax rates can lead to increases in

Back 36

tax revenues, labor income, household saving, and purchases of stocks and other taxable assets

Front 37

Which of the following factors encouraged the "consumer culture" of the 1920s?

Back 37

increased use of installment plans, the growth of radio and print advertising, increased government support for road building, and a growing network of dependable electric power

Front 38

Between 1925 and 1929

Back 38

real prices for housing decreased, outstanding mortgage debt increased, the number of new housing starts decreased, and home loan defaults and foreclosures increased