What "backs" the money supply?
A. The amount of gold the U.S. government has on deposit at its banks.
B. The fact that the intrinsic value of coins in circulation is greater than their face value.
C. The U.S. government's ability to keep the value of money relatively stable.
D. The fact that currency is issued as Federal Reserve Notes.
Answer: C
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For each of the following, how would they be included in the national income accounts?
a. The University of California buys a new computer. b. Charles buys a new MP3 player. c. Marian buys a new mountain cabin. d. Vikki buys an old mansion with hopes of restoring it. e. Farmer Brown buys a used combine harvester.
Fill in this table. Assume that fixed cost is $100.
In economic analysis marginal analysis is used to:
a. make an either-or decision. b. determine which costs are sunk costs. c. decide how much of something is the optimal amount. d. convince others that the costs of a certain activity do not matter
Exhibit 5-8 GDP data (billions of dollars) Personal consumption expenditures$850 Interest90 Corporate profits150 Government spending400 Depreciation100 Rental income70 Gross private domestic investment120 Compensation of employees830 Exports120 Imports70 Indirect business taxes80 Proprietors' income120 Personal income taxes110 Social Security taxes50 Transfer payments160 In Exhibit 5-8, personal income (PI) equals:
A. $1,280 billion. B. $2,290 billion. C. $1,310 billion. D. $2,320 billion.