Why are Federal Reserve Notes (U.S. dollar bills) money in the U.S? Because
A) they are backed by gold.
B) they are used as a general medium of exchange.
C) they are created by the government.
D) they would otherwise be useless.
E) of all the above reasons.
B
Economics
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Can macroeconomic policy be used systematically to create unanticipated inflation?
A) No, according to Keynesian economists. B) Yes, according to classical economists. C) No, according to classical economists. D) Yes, according to Keynesian economists, if Ricardian equivalence holds.
Economics
In the long run in perfect competition, firms will operate at
a. minimum average total cost. b. an average total cost that is just slightly above the minimum. c. an average total cost that is about 10% above the minimum. d. an average total cost that is below price.
Economics