Paper money is fiat money because it has been declared by government as a means of exchange
a. True
b. False
Indicate whether the statement is true or false
True
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The GDP deflator is a measure of
A) taxes and subsidies. B) changes in quantities. C) prices. D) depreciation. E) changes in nominal GDP.
Which of the following is the largest category of federal government expenditures?
A) transfer payments B) grants to state and local governments C) interest on the debt D) defense spending
In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic money supply increases
A) domestic output, but has no effect on the domestic price level or the nominal exchange rate. B) the domestic price level, but has no effect on domestic output or the nominal exchange rate. C) the nominal exchange rate, but has no effect on domestic output or the domestic price level. D) the domestic price level and the nominal exchange rate, but has no effect on domestic output.
Joe's income is $500, the price of food (F) is $2 per unit, and the price of shelter (S) is $100. Which of the following represents his budget constraint?
A) 500 = 2F + 100S B) F = 250 - 50S C) S = 5 - .02F D) All of the above.