The goldsmith's ability to create money was based on the fact that:
A. withdrawals of gold tended to exceed deposits of gold in any given time period.
B. consumers and merchants preferred to use gold for transactions, rather than paper money.
C. the goldsmith was required to keep 100 percent gold reserves.
D. paper money in the form of gold receipts was rarely redeemed for gold.
D. paper money in the form of gold receipts was rarely redeemed for gold
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As disposable income decreases, consumption
A. decreases. B. may either increase or decrease. C. may either increase or decrease depending on the MPC. D. increases.
The above table gives the demand and supply schedules for cat food. If the price is $3
00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price? If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?
If the federal government placed a 50 cent per pack excise tax on cigarette manufacturers, and if as a result, the price to consumers of a pack of cigarettes went up by 40 cents, the:
a. actual burden of this tax falls mostly on consumers. b. actual burden of this tax falls mostly on manufacturers. c. actual burden of the tax would be shared equally by producers and consumers. d. tax would clearly be a progressive tax.
Personal consumption expenditures include:
a. all commodities that business firms buy. b. the purchase prices paid for stocks and bonds by individual households. c. the construction of residential housing. d. all goods and services bought by households. e. the corrected value of housewives' services.