What is both a necessary and sufficient condition for anything to become money?
A) Metallic backing
B) Government fiat
C) Acceptability
D) A stable price level
E) Seignorage
C
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What is the difference between a recessionary gap and an inflationary gap?
What will be an ideal response?
Laws limiting trade are often referred to as:
A. trade protection. B. trade liberalization. C. trade enhancement. D. international policy.
Graphically, economies to scale are illustrated by
A) a downward sloping long-run average cost curve. B) a horizontal long-run average cost curve. C) an upward sloping long-run average cost curve. D) a long-run average cost curve that is shaped like an upside down U.
Crowding out is when government borrowing and spending result in __________ interest rates, which reduces business investment and household consumption.
a. flat b. higher c. lower d. reduced