The real seignorage collected by the government in an all-currency economy is the product of
A. the debt-GDP ratio and the real money supply.
B. the debt-GDP ratio and the rate of inflation.
C. the rate of inflation and the real supply of government bonds.
D. the rate of inflation and the real money supply.
Answer: D
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________ economists believe that the economy is self-regulating and will be at full employment as long as monetary policy is not erratic
A) Keynesian B) Monetarist C) Classical D) All
The difference between income and consumption is
a. rent b. profit c. saving d. opportunity cost e. roundabout consumption
If a nation imposes a tariff on imports, the portion of the tax paid by citizens depends upon
A. elasticity of demand. B. elasticity of supply. C. how important the good is. D. income elasticity. E. cross elasticity of demand with domestic products.
The invisible hand refers to
A. Intervention in the economy by the government bureaucrats we do not see and over whom we have no control. B. The person who has the responsibility to coordinate all the markets in a market economy. C. Undiscovered natural resources. D. The allocation of resources by market forces.