ANSWERS TO MATCHING II

A. Frederich Hayek and Ludwig von Mises
B. Milton Friedman
C. Joseph Schumpeter
D. Third World
E. 'agreement' between Truman's Treasury 
and the Federal Reserve as to Fed purchase 
of T bills, policy toward money supply, etc. 
F. estimation that in the not too distant future, 
all the poor will be single mothers and their dependents
G. the resoucres of the earth, including the fixed amount 
of capital, will be inadequate to support
the earth's increasing population.
H. argued that from the 'original positon' 
behind the 'veil of ignorance,' we would all 
choose a completely equal wealth distribution, 
and that government is the vehicle for effecting it.
I. a good argument for protectionist policies 
in the US in the pre Civil War period.
J. such measures as red tape that effect protection.
K. argued that government programs intended 
to fight poverty have increased it, if not caused it.
L. a good argument for maintaining, 
even through protection, a strong steel industry 
or capacity to build bombes, etc.
M. any of a number of proposed governmental policies 
to block competition from foreign firms.
N. the relative values of the currencies 
of different countries vis a vis one another 
-- the present standard of such values is largely 
pegged to the US dollar.
O. was declining until the government's 
war on poverty, since which it has increased.
P. suggests that there is some positive relationship 
between the federal budget deficit and the trade deficit. 
Q. period of time between when a policy is implemented 
and when its impact can be seen.
R. bank deposits 'create' money.
S. the system of fixed exchange rates sat up 
after WWII and which were maintained until 
the middle seventies, since which time we have 
had a free, market based system of exchange rates.
T. argues for decreased governmental regulation 
and lower tax rates to stimulate economic production.
U. measures such as currency devaluation, 
free trade without governmental invention, 
and population control measures, and sometimes 
even wealth and property redistribution, 
as a prerequisite for IMF loans to countries.
V. a large group of people systematically 
excluded from the economic advances 
of an economy, argued by some to result 
from government poverty programs which 
redistribute wealth and decapitate 
the profit/social surplus fuel of development, 
and by subsidizing poverty, actually increases it.
W. international banking institution under 
UN auspices which functions much as a form 
of 'overdraft' protection for countries in regard 
to their currency exchange matters, extending loans 
to them to meet needs to promote trade, and which 
is under control of the largest economic members, 
the G-7 nations.
X. purports to measure the deposit 
and money creation expansion impact.
Y. holds that the business cycle follows fluctuations 
in the money supply.
Z. indicate what the economy will be doing 
six months ahead; such as housing starts 
and wholesale purchases.
AA. an international agreement to set 
reduced barriers to trade among nations.
BB. increased output per unit of input; 
largely a function of techological innovation.
CC. one of the most harmful of the conditionalities 
imposed by the IMF, it suggests that undeveloped
nations should receive loans to acquire only 
to match their level of technological development, 
thus consigning them to subsistence, and to be unable 
to pay back their loans or the interest on them.
DD. originally intended to be an effort to increase 
trade among the US, Mexico, and Canada by reducing 
trade barriers among them, the enabling measures 
of the actual plan put the economies of these 
countries even  more under control 
of international planners.

Return to Answer Sheet of Exam