Explain the three rules that countries must follow to maintain a gold standard
What will be an ideal response?
First, they must fix the value of their currency unit in terms of gold. The second rule of the gold standard is that nations keep the supply of their domestic money fixed in some constant proportion to their supply of gold. The third rule of a gold standard is that nations must stand ready and willing to provide gold in exchange for their home country currency.
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A sum of money to be received in the future is worth more than a sum of money today
a. True b. False Indicate whether the statement is true or false
In the ALCOA Case of 1945, the courts held that:
A. firms that sell more than half of their output overseas are exempt from antitrust legislation. B. retail and wholesale firms are exempt from antitrust legislation. C. only contracts and combinations that unreasonably restrain trade are in violation of the Sherman Act. D. the mere possession of monopoly power is a violation of the antitrust laws.
Exhibit 15-2 Aggregate demand and supply model
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Suppose the economy in Exhibit 15-2 is in equilibrium at point E1 and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, the federal government can move the economy to full employment at point E2 by:
A. decreasing government tax revenue by approximately $33 billion. B. decreasing government tax revenue by $750 billion. C. increasing government tax revenue by $100 billion. D. increasing government tax revenue by approximately $33 billion.
To encourage people to retire later, the government could:
A) engage in a public service campaign explaining the value of these employees to the encourage people to retire later, the government could: economy. B) lower Social Security benefits. C) increase Social Security benefits. D) raise the tax rate on older individuals.