If an economy used gold as money, its money would be
a. commodity money, but not fiat money.
b. fiat money, but not commodity money.
c. both fiat and commodity money.
d. functioning as a store of value and as a unit of account, but not as a medium of exchange.
a
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"If the marginal tax rate is high enough, the expenditure multiplier can be negative." Is the previous statement correct or incorrect?
What will be an ideal response?
What can we say about the employment of resources if the economy is at a point on its production possibility frontier?
What will be an ideal response?
If the Fed sells securities worth $10 million to a commercial bank, the Fed's balance sheet will show
A) an increase in securities held of $10 million and an increase in bank reserves of $10 million. B) an increase in securities held of $10 million and a decrease in bank reserves of $10 million. C) a decrease in securities held of $10 million and an increase in bank reserves of $10 million. D) a decrease in securities held of $10 million and a decrease in bank reserves of $10 million.
All other things constant, the entry of new firms into a labor intensive industry like carpet weaving is likely to: a. shift the market demand for labor curve to the right
b. make the market demand for labor curve steeper. c. shift the demand for labor curve for each carpet producer to the left. d. shift the market supply of labor curve to the left.