The only money that can be used as a standard of value is fiat money
a. True
b. False
Indicate whether the statement is true or false
False
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To counter a speculative attack on an overvalued currency, the monetary policymakers must ________ monetary policy and to fight a recession the monetary policymakers must ________ monetary policy.
A. ease; ease B. tighten; tighten C. tighten; ease D. ease; tighten
Potential output in an economy decreases as the supply of labor decreases or the capital stock increases
Indicate whether the statement is true or false
Central banks sometimes attempt quantitative easing when
A) money growth is too high. B) inflation is too high. C) there is a liquidity trap. D) inflation is too low.
Which of the following examples illustrates the circular flow model?
a. Marie buys flour at a store and uses it to bake a cake for the manager of the store. b. Brenda buys hand lotion and uses it to reduce the dryness of her hands. c. Terence buys an RBD computer, and RBD uses the revenue to purchase material to make more computers. d. Charles buys 24 cookies at a bakery, and the bakery donates part of the money to charity.