A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money.
b. restricting international exchange of goods and services.
c. ensuring the convertibility of paper money into gold.
d. maintaining a fixed stock of foreign currencies.
e. ensuring balance of payment surplus.
c
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If a government wants to maximize revenues from a tax it should
A) impose it on sellers. B) impose it on consumers. C) choose a good with a relatively elastic demand. D) choose a good with a relatively inelastic demand.
How will an increase in government expenditures during a recession be reflected in GDP?
a. An increase in government spending will reduce aggregate demand and decrease GDP. b. An increase in government spending will not affect GDP. c. An increase in government spending will increase GDP, but only if it is directed toward economically productive projects. d. The government spending will increase GDP even if the spending encourages rent seeking and other unproductive activities.