A fiduciary monetary system means
A) that the value of each currency is determined by the amount of gold held by each nation.
B) that the currency is backed by implicit faith in government.
C) that money is legal tender.
D) that money has commodity value.
B
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The demand for nominal money
A) increases as the price level increases. B) decreases as the price level increases. C) depends on the quantity of money. D) is the same as the demand for real money.
Off-budget expenditures:
What will be an ideal response?
Any business wanting to attract financial capital must expect to
A. keep implicit costs as close to zero as possible. B. earn a positive economic profit. C. pay a normal rate of return. D. pay a below normal rate of return in order to make a positive rate of return itself.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C