When someone buys a bond, they give up the bond's price in exchange for:

The reason we are willing to accept money with no intrinsic value is that

A) the money supply is backed by an equal amount of gold and silver. B) we have a fiduciary monetary system in which currency has both acceptability and predictability of value. C) the value of the money varies directly with changes in the price level. D) paper currency may be exchanged for full-bodied money.

In order to analyze the factors that determine the quantity of real GDP demanded, in the aggregate expenditure model we assume that

A) real GDP does not change. B) the unemployment level is fixed. C) the inflation rate is assumed to equal the natural unemployment rate. D) the natural rate of unemployment is fixed. E) the price level is fixed.