The primary difference between commodity money and fiat money is that
a. commodity money is a medium of exchange but fiat money is not.
b. fiat money is a medium of exchange but commodity money is not.
c. commodity money has intrinsic value but fiat money does not.
d. fiat money has intrinsic value but commodity money does not.
c
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Net domestic product
a. represents total wages and salaries in an economy b. equals GDP minus indirect business taxes c. equals GDP minus capital depreciation d. equals C + I + G + (X – M) e. is the value of existing capital stock used up in making goods
If the government has a spending flow that exceeds the revenues it collects, the government will run a ________ that year.
A. surplus B. debt C. debt and a deficit D. deficit
A open market purchase of government securities by the Fed will cause which of the following?
A. an increase in the equilibrium quantity of reserves B. an increase in the amount of excess reserves that banks will hold initially C. a reduction in the federal funds rate D. all of these
Say a monopolist sells in two separate markets, with demand PA = 100 - 2Q and PB = 50 - Q respectively. Marginal costs in both markets are constant and equal to 8. The monopolist would charge a price of ________ in market B in order to maximize profits.
A. 8 B. 0 C. 29 D. 21