Wide acceptance of money without intrinsic value comes largely from the fact that it:
A. is convenient to use.
B. can be used domestically and internationally.
C. has a stable value.
D. is hard to counterfeit.
Answer: C
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In the above figure, a minimum wage will not change the unemployment rate if it is set at
A) $6.00. B) $9.00. C) $12.00. D) Both B and C are correct because any wage rate that exceeds $9 per hour has no effect on the unemployment rate. E) None of the above because the minimum wage always affects the unemployment rate.
If the prices in the United States rise faster than those in other countries,
A) the exchange rate rises. B) the exchange rate falls. C) then interest rate parity must not hold. D) the interest rate in the United States falls.
If the Fed wants to raise interest rates, then it can use its open market operations to:
A. increase the money supply. B. decrease the money supply. C. increase money demand. D. decrease money demand.
Use the above figure. If a commission regulates the above monopoly using fair-return (average cost pricing), then the industry's output will be ________ and the product's price will be ________.
A. Q1; P1 B. Q4; P1 C. Q2; P3 D. Q3; P2