What gives money value under a fiat system?
A. Fiat money is the same as Treasury bonds.
B. Fiat money is backed by gold.
C. Fiat money is also a commodity.
D. The supply of fiat money is controlled by the government.
Answer: D
You might also like to view...
The table above shows three production methods to produce 100 automobiles per day. If the price of labor is $20 per unit and the price of capital is $100 per unit, which of the three methods is economically efficient?
A) Method A only B) Method B only C) Method C only D) All three methods are economically efficient.
The three oil shocks the U.S. experienced in 1973-1974, 1979-1980 and 2007-2008 had a consistent result ________
A) a decline in the MPK B) a decline in the real rental price of capital C) a decline in stock prices D) all of the above E) none of the above