The U.S. dollar bill
a. is fiat money
b. cannot be used as a medium of exchange
c. is backed by gold
d. cannot be used as a store of value
e. cannot be used as a payment for debts
A
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Applying supply and demand analysis, other factors held constant, the steeper the supply curve (more elastic), the larger the burden of a sales tax that is borne by the sellers
a. True b. False Indicate whether the statement is true or false
If you fit a line through a scatter diagram of points that represent coordinates of consumer spending and disposable income, the slope of this line will equal the
a. propensity to consume b. variable propensity to consume. c. marginal propensity to consume. d. average propensity to consume.
Refer to Figure 11.1. Assume aggregate demand is represented by AD1 and full-employment output is $6.0 trillion. The AD shortfall is equal to
A. $0.6 trillion. B. $0.4 trillion. C. $0.2 trillion. D. None of the choices are correct.
If minimum wage legislation does not cause unemployment, then:
A. those who work for minimum wage will benefit. B. firms will generally gain by earning higher profits. C. most likely the government won't study how minimum wage legislation may affect employment. D. minimum wages may still be binding for many employees.