A system in which money is issued by the government and its value is based uniquely on the public's faith that the currency represents command over goods and services is the
A) transactions approach.
B) liquidity approach.
C) fiduciary monetary system.
D) transaction deposits.
C
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The Cobb-Douglas production function is: Q = 1.4*L0.6*K0.5 . What would be the percentage change in output (%?Q) if labor grows by 3.0% and capital is cut by 5.0%? [HINT: %?Q = (EL * %?L) + (EK * %?K)]
a. %?Q = + 3.0% b. %?Q = + 5.0% c. %?Q = - 0.70% d. %?Q = - 2.50% e. %?Q = - 5.0%
Studies have shown that tipping is much less common in countries where caring and personal relationships are highly valued, as opposed to the values of success and materialism
Indicate whether the statement is true or false
In a perfectly competitive market, if the market price is less than ATC, and the market price equals the MC, then the firm should:
A.) Result in an increase in profits B.) Result in a loss of income C.) Result in a growth of the industry D.) Result in more sellers entering the market
Central banks in most developing countries:
A. recognize the link between money creation and inflation but often have no other means of financing government expenditures. B. recognize the link between money creation and inflation but don't care about inflation. C. do not recognize the link between money creation and inflation. D. recognize the link between money creation and inflation and exploit this link to reduce their budget deficit.