Although checking deposits are considered money, they are actually

a. fictitious numbers in persons' checkbooks.
b. backed by commodities like gold.
c. not very useful for making payments.
d. bookkeeping entries in bank balance sheets.


d

Economics

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If the federal government is seeking to reduce large budget deficits, the flexibility of fiscal policy is

a. limited when trying to combat inflation. b. increased when trying to combat unemployment. c. limited when trying to combat unemployment. d. unaffected whether trying to combat inflation or unemployment.

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Which statement is true?

A. Virtually all of the poor receive public assistance, but not food stamps. B. Virtually all of the poor receive food stamps, but not public assistance. C. Virtually all of the poor receive public assistance and food stamps. D. None of these statements are true.

Economics

If a large decrease in the cost of capital leads to a firm increasing the labor it uses

A. then the output effect outweighs the substitution effect. B. the substitution effect outweighs the output effect. C. the substitution and output effects are equal. D. there is no way to determine the relative strengths of the output and substitution effects.

Economics

The Greeks who had anticipated that Greece would opt-out of euro,

A. purchased government securities from the central bank of Greece. B. increased their euro-denominated deposits in Greek banks. C. converted their liquid assets to gold deposits. D. closed their euro-denominated accounts and took those to foreign banks.

Economics