One reason we use paper money instead of gold coins in the Unites States today is because it:
A. is easier to control its worth.
B. has no intrinsic value.
C. has a more stable value.
D. is more convenient.
Answer: D
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In the Tragedy of the Commons, joint action among the individual citizens would be necessary to solve their common resource problem unless the government intervenes
a. True b. False Indicate whether the statement is true or false
Even as the U.S. government ran large budget deficits in the early 2000s, the interest rate did not rise substantially. Which of the following is among the reasons that crowding out did not raise interest rates at that time?
A. The Federal Reserve decreased the money supply. B. The government spent the borrowed money in such a way that productivity, and therefore the availability of savings, dramatically increased. C. Americans increased their willingness to save at the same time that the budget deficits appeared. D. Foreigners were willing to finance the U.S. deficit with their abundant supply of savings.
The sales tax is generally considered to be a regressive tax.
Answer the following statement true (T) or false (F)
Explain the role of financial intermediation.
What will be an ideal response?