Congress passed legislation to create the federal reserve system in 1913 in order to
A. Take the monetary control over the economy away from the Treasury Department
B. End the instability created by a huge crude oil price hike during that time
C. End the instability created by bank panics by acting as a lender of last resort
Ans: C. End the instability created by bank panics by acting as a lender of last resort
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"Late registration will result in an additional $30 fee." This is an example of:
A. trade-off. B. a disincentive. C. marginal cost. D. group responsibility.
The velocity of money is the
a. rate at which the price index for consumer goods rises. b. multiple by which an increase in government expenditures will cause output to expand. c. average number of times a dollar is used to buy goods and services included in GDP. d. number of times a dollar is taken out of the country during a year.
Exhibit 5-9 Supply and Demand Curves for Good X
?
In Exhibit 5-9, assume the government places a $200 per unit sales tax on Good X. The percentage of the burden of taxation paid by consumers of Good X is:
A. zero. B. 25 percent. C. 50 percent. D. 100 percent.
Which of the following types of money has intrinsic value?
A. Commodity money B. Fiat money C. Both commodity and fiat money D. None of the above is correct.