According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit. The U.S. government is continually adding security features to its paper currency to help make counterfeit money easier to detect
If counterfeit currency remained undetected, a vast increase in the supply of counterfeit U.S. currency would
A) lower the nominal income of the average U.S. worker.
B) decrease aggregate demand in the short run.
C) lead to inflation.
D) reduce the amount of M1.
C
You might also like to view...
Competitive firms earn zero profit in the long run when
A) entry is completely free. B) entry is limited. C) Both A and B. D) Neither A nor B.
If M = 9,000 . P = 6, and Y = 1,500, what is velocity?
a. 0.167. b. 1. c. 4. d. 36.
The theory of liquidity preference is most helpful in understanding
a. the wealth effect. b. the exchange-rate effect. c. the interest-rate effect. d. misperceptions theory.
The data in the table reveal that
| Unit of Labor | Total Product | Product Price |
| 0 | 0 | $2.20 |
| 1 | 15 | 2.00 |
| 2 | 28 | 1.80 |
| 3 | 39 | 1.60 |
| 4 | 48 | 1.40 |
| 5 | 55 | 1.20 |
| 6 | 60 | 1.10 |
A. there is no level of output at which this firm can operate at a profit.
B. the firm is selling its product in an imperfectly competitive market.
C. the firm is selling its product in a purely competitive market.
D. the law of diminishing returns is not applicable to this firm.