Commodity money includes such things as paper currency and travelers checks that have no commodity value in and of themselves, but which can be used to purchase commodities
Indicate whether the statement is true or false
false
You might also like to view...
The income tax system serves as an automatic stabilizer over the course of the business cycle
Indicate whether the statement is true or false
According to Keynes, a shift in liquidity preference is
a. a shift in the money demand schedule drawn against the interest rate as the level of income changes. b. a change in the amount of money demanded for given levels of the interest rate and income. c. a shift in individuals' portfolios away from bonds and toward holding an increased amount of money for given levels of the interest rate and income. d. Either a or c e. all of the above
Which of the following is false about potential output?
A. It is the level of output an economy can achieve when labor is employed at its natural level. B. It is the long run output level that guarantees price stability. C. If a country is producing its potential output, then it is producing at a point on its production possibilities frontier. D. It is also called the natural level of real GDP.
Which of the following statements about the public debt is TRUE?
A. It is equal to the budget deficit. B. It is a stock variable. C. It decreases when the government runs a budget deficit. D. all of these