Use the above table. The MPS is
A) 0.91.
B) 0.80.
C) 0.20.
D) 0.09.
Answer: C) 0.20.
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In a fiduciary monetary system, the value of the money issued by a government is based on
A) the ability to convert it to some asset of value, like silver. B) the gold held in that government's vaults. C) public confidence in that currency's acceptability and predictability of value. D) its being made out of some material with a market value equal to a bill's face value.
Gross domestic product can be calculated
A) either by valuing the nation's output of goods and services or by valuing the income generated in the production process. B) by adding up the personal consumption of all members of the society. C) by adding up the value of all intermediate goods used in the economy. D) by adding up the income tax returns of all members of the society.
Refer to Table 13-1. The Table shows
A) a demand schedule with an inelastic segment from $7.50 to $6.50 followed by an elastic segment. B) a demand schedule with an elastic segment from $7.50 to $6.50 followed by an inelastic segment. C) an elastic segment of the demand schedule. D) an inelastic segment of the demand schedule.
The M2 money supply
A) includes M1. B) is commonly referred to as the broad definition of the money supply. C) includes savings deposits. D) is larger than M1. E) all of the above