GDP can be measured in terms of expenditures but not income, since income is subject to taxation

Monetary policy affects the economy ________.

A. indirectly through changes in taxes B. directly through changes in government spending C. directly through changes in the aggregate supply D. indirectly through changes in the interest rate.

What "backs" the money supply?

A. The amount of gold the U.S. government has on deposit at its banks. B. The fact that the intrinsic value of coins in circulation is greater than their face value. C. The U.S. government's ability to keep the value of money relatively stable. D. The fact that currency is issued as Federal Reserve Notes.