ECO 285 – Money & Banking
Dr. D. Foster – Fall 2015
Homework #8 Quiz - This is an individual assignment
1. Franklin D. Roosevelt was born to parents best described as upper class.
2. Before becoming president, Roosevelt had been the governor of Massachusetts.
3. Among the many alphabet-soup agencies created by the New Deal was the TVA.
4. The industry codes of the NRA were largely written up by the industries themselves.
5. The AAA only lasted until 1936 when its charter expired.
6. It was President Roosevelt’s belief that businesses would actually support a continuation of the
NRA in the face of its demise.
7. The tax bill proposed in 1935 by the Administration is referred to as the “soak the middle class”
tax increase.
8. FDR claimed that the main cause of the depression of 1937-1938 was the monopoly power of
business.
9. Leading up to the depression of 1937, the Federal Reserve raised the required reserve ratio for
banks.
10. With the success of the Second New Deal, Democrats made huge electoral gains in the 1938
Congressional election.
11. From 1930 to 1940 net investment in the U.S. economy was approximately -$3 billion.
12. Smiley cites the idea of “regime uncertainty” to explain the poor performance of the economy
during the 1930s.
13. During World War II, consumption by civilians rose dramatically, indicating that economic
prosperity was real.
14. Before the Great Depression, federal budget deficits were normal.
15. After the war, with no gold standard to enforce discipline, the Fed destabilized our economy
with inflationary policies.
16. According to Smiley, the lesson of the Great Depression is that “governments failed, not
markets.”
17. According to Auerback discussions today of fiscal austerity and deficit reduction are “wrongheaded.”
18. According to Auerback it was the huge fiscal stimulus of our involvement in WWII that finally
brought us out of depression.
19. According to Poulson decreased government spending and reduced debt contributed to the
very short nature of the 1920 depression.
20. According to Poulson while some claim that President Hoover did little to combat the Great
Depression, federal spending was up nearly 50% from 1929 to 1932.
Name:
ECO 473 – Money & Banking
Dr. D. Foster – Fall 2015
Homework #8
Please use the following to record your answers and turn in with your homework:
Quiz #8
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6
11
16
2
7
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3
8
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4
9
14
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5
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Chapter summary (100 words) over Smiley Chapter 3 or Chapter 4:
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Reaction essay (100-150 words) over Smiley Chapter 5:
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