Which of the following must be true of a commodity for it to be used as money?
a) It must be backed by gold.
b) It must be made of paper or metal.
c) It cannot have intrinsic value.
d) It must be readily accepted by many people.
Ans: d) It must be readily accepted by many people.
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Thrift institutions that specialize in mortgage investments and borrow short and lend long are risky
Indicate whether the statement is true or false
Continuing with the same family from the preceding question, what is the greatest (integer) number of vacation days the family would be willing to give up in order to guarantee a healthy vacation?
a. 1 b. 2 c. 3 d. 4
Which of the following is an example of the development of human capital?
A. Fostering trust among firms that allows short-term credit B. Designing robots used to manufacture cars C. Conducting on-the-job training D. Contributing to well-developed financial markets
When an economy is in an economic boom, discretionary fiscal policy would call for ________, and the automatic stabilizers would ________.
A. lowering tax rates; lower tax revenues B. lowering tax revenues; lower tax rates C. increasing tax rates; lower tax revenues D. increasing tax rates; increase tax revenues