When banking first began, it could be said that paper money was in reality
a. worthless.
b. receipts.
c. government money.
d. fiat money.
b
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Refer to Figure 17-3. The shifts shown in the short-run and long-run Phillips curves between period 1 and period 2 could be explained by
A) an increase in the natural rate of unemployment from 5.5 to 6.8 percent. B) an increase in the expected inflation rate from 4.0 to 5.5 percent. C) either an increase in expected inflation from 4.0 to 5.5 percent or an increase in the natural rate of unemployment from 5.5 to 6.8 percent. D) None of the above is correct.
The long-run Phillips curve is
A) vertical. B) horizontal. C) upward sloping. D) downward sloping.
Unlike dealers, brokers
A) deal in the primary market. B) deal in equity and not in debt. C) do not buy or sell for their own account. D) get most of their funds from consumer deposits.
When two countries specialize and trade:
A. both can enjoy more output than either could produce on its own. B. they can have consumption possibilities beyond their production possibilities. C. surplus can be gained by both countries. D. All of these are true.