To keep high inflation from eroding the value of money, monetary authorities in the United States:
A. establish insurance on checkable deposit accounts.
B. make paper money legal tender for the payment of debt.
C. control the supply of money in the economy.
D. create token money that is less than its intrinsic value.
Answer: C
You might also like to view...
On a TE-TP diagram consider a level of Real GDP at which the vertical distance to the TE line is less than the vertical distance to the 45-degree line. This level of Real GDP is __________ its equilibrium level, with __________
A) above; TE > TP B) above; TE < TP C) below; TE > TP D) below; TE < TP
Malmud wants to know how much the economy of his country has grown since he was born 30 years ago. First, he compares the GDP from 30 years ago to today’s GDP and finds that the economy grew by over 300 percent. This seems wrong to Malmud, because he does not believe his country is vastly wealthier than it was when he was young. Then he realizes that he has not considered how much the population of his country has grown over that same period. To get a better picture of how much the country’s economy has grown, he should look at the change in ______.
a. average incomes b. physical capital c. real GDP per capita d. diminishing returns
_____________________ (Microeconomics/Macroeconomics) is the discipline that ezamines the performance and behavior of an economy as a whole.
Fill in the blank(s) with the appropriate word(s).
An open economy produces most of the goods and services that it needs, with few imports and exports.
Answer the following statement true (T) or false (F)