Fiat money is money:
A. accepted by law regardless of its intrinsic value.
B. that is not included as part of the M1 money supply.
C. that is backed by gold or silver held on reserve by the government.
D. such as coins that are made from metal.
Answer: A
You might also like to view...
Refer to above figure in which negative externality existed. The government imposes a $1.00 pollution tax on the producer. Supply shifts leftward
A) This tax will be shifted entirely to the consumer. B) This tax will be borne entirely by the producer. C) The amount of the tax shifted to the consumer depends on the consumer's reaction. D) The tax will be divided into equal amounts between consumer and producer.
The role of prices in a market economy is to
a. make producers rich at the expense of consumers b. replicate what society produced in the past c. determine the allocation of resources d. enforce what the government chooses e. force consumers to pay for business profits
For an economy as a whole, income must equal expenditure because
a. the number of firms is equal to the number of households in an economy. b. individuals can only spend what they earn each period. c. every dollar of spending by some buyer is a dollar of income for some seller. d. every dollar of saving by some consumer is a dollar of spending by some other consumer.
The demand for labor increases when the:
A. value of the marginal product of labor increases. B. real wage decreases. C. value of the marginal product of labor decreases. D. real wage increases.