Money in a fiduciary monetary system is backed by
A) gold.
B) the public's confidence that the assets will continue to serve as money.
C) the intrinsic value of the materials used to make the assets that serve as money.
D) assets owned by the government that are intrinsically valuable.
B
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The marginal product of labor indicates ________. Therefore the MPL curve is also ________
A) the quantity of labor supplied for a given wage; the equilibrium price of labor B) the quantity of labor demanded for a given wage; the equilibrium price of labor C) the quantity of labor demanded for a given wage; the demand curve of labor D) the quantity of labor supplied for a given wage; the supply curve of labor E) none of the above
In a system of flexible exchange rates, expansionary monetary policy abroad would induce
a. a rise in the U.S. exchange rate. b. a fall in the U.S. rate of exchange. c. a balance of payments surplus for the United States. d. no change in U.S. exchange rates.
The actions of borrowers and lenders are coordinated by
a. the interest rate in the loanable funds market. b. the government in the resources market. c. businesses in the resources market. d. the interest rate in the goods and services market.
Because of differences in tax treatment, municipal bonds pay a higher interest rate than do corporate bonds
a. True b. False Indicate whether the statement is true or false