An element of trust is built into money because
A. people must trust that the government can always print more of it if necessary.
B. people must trust that it will still have value when they want to spend it in the future.
C. the government maintains a monopoly over the money supply, and people tend to trust monopolies.
D. people must trust the Federal Reserve to prevent banks from failing.
Answer: B
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Let "C = Ca + by" define the consumption function. The term "Ca" is known as
A) induced consumption. B) autonomous consumption. C) the marginal propensity to save. D) the marginal propensity to consume.
Headquartered in Washington, D.C., the Board of Governors of the Federal Reserve determines monetary policies and strategies based on the state of the economy
Indicate whether the statement is true or false