A fiduciary monetary system is
A) fully backed by gold.
B) dependent on barter for exchanges of goods and services.
C) dependent on the public's faith to accept the currency.
D) one which cannot have any inflation.
C
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A decrease in ________ leads to an equal ________ in the monetary base in the short run
A) float; increase B) float; decrease C) Treasury deposits at the Fed; decrease D) discount loans; increase
If households experienced greater uncertainty about their economic future, which of the following would occur in the market for loanable funds?
a. Both the supply and demand for funds would increase, lowering the interest rate and raising investment spending. b. The supply of funds would decrease, raising the interest rate and lowering investment spending. c. The supply of funds would decrease, lowering both the interest rate and investment spending. d. The supply of funds would increase, lowering both the interest rate and investment spending. e. The supply of funds would increase, lowering the interest rate and raising investment spending.
Effective minimum-wage laws will most likely
a. increase demand for labor. b. create a surplus of labor. c. increase incomes for all unskilled workers. d. decrease incomes for all unskilled workers.
The aggregate consumption function is C = 1,200 + 0.4Yd. If income is $3,000 and net taxes are $400, consumption equals
A. 1,760. B. 2,240. C. 2,560. D. 2,760.