A fiduciary monetary system ultimately rests on

A. the power of the government.
B. the value of the assets backing up the system.
C. the public's confidence in the system.
D. the difficulty of counterfeiting the currency.


Answer: C

Economics

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Rising nominal GDP will increase the demand for money and short-term interest rates

Indicate whether the statement is true or false

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Assume that DeShawn is a single parent who is in poverty. He receives food stamps and Medicaid. For every $100 that he earns, DeShawn loses $35 of his food stamp benefits and $20 in his Medicaid benefits. Also, DeShawn's income is taxed at a rate of 10 percent. Then, Peter's effective marginal tax rate is

a. 45 percent. b. 55 percent. c. 65 percent. d. 70 percent.

Economics

The consumption possibilities curve is the

A. indifference curve. B. budget constraint. C. supply curve. D. demand curve.

Economics

The M2 definition of money includes traveler's checks.

Answer the following statement true (T) or false (F)

Economics