Paper money
a. has a high intrinsic value.
b. is the primary medium of exchange in a barter economy.
c. is valuable because it is generally accepted in trade.
d. is valuable only because of the legal tender requirement.
c
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In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a decline in the reserve requirement ________ the ________ curve of reserves and causes the federal funds interest rate
to fall, everything else held constant. A) decreases; demand B) increases; demand C) increases; supply D) decreases; supply
For a firm to be engaged in predatory pricing, and for it to be successful: a. It would have to charge a price less than the average variable cost of production. b. It would have to drive rivals out of the market
c. It would have to raise its prices after rivals were driven out of the market. d. All of the above would have to be true.
If a player has a strategy where one course of action under-performs all others no matter what other players do, that strategy is
A) a prisoner's dilemma. B) dominated. C) dominant. D) a loser.
Three basic decisions must be made by all economies. What are they?
What will be an ideal response?