Cassidy writes a check to pay for her groceries. She is using ______.
A. currency
b. official legal tender
c. fiat money
d. a demand deposit
d. a demand deposit
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According to the Coase Theorem, so long as property rights are established and transactions costs are low, plaintiffs in court cases involving externalities will not care which way a judge decides.
Answer the following statement true (T) or false (F)
Economists classify all of the following as capital, except one. Which one is not capital?
a. a $20 bill in a firm's petty cash drawer b. the building where our economics class meets c. a plumber's wrench d. a railroad car e. a factory
Believers in fixed rules maintain that
A. with accurate forecasts, we can see inflation coming at least one year ahead of time. B. the length of stabilization lags is not important because fiscal policy actions are taken quickly and the economy feels the effect on aggregate demand quickly. C. we should forget about discretionary policy and put the economy on autopilot, relying instead on automatic stabilizers and the economy’s self-correcting mechanism. D. the economy’s self-correcting mechanism is slow and not very reliable, even with automatic stabilizers.
A decrease in the capital stock would be expected to
a. decrease the labor force. b. increase the level of output. c. decrease real GDP per capita. d. increase real GDP per capita.