In a fiduciary monetary system, the value of the money issued by a government is based on
A) the ability to convert it to some asset of value, like silver.
B) the gold held in that government's vaults.
C) public confidence in that currency's acceptability and predictability of value.
D) its being made out of some material with a market value equal to a bill's face value.
C
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The study of factors that contribute to the economic development of a country is
A) development economics. B) the theory of technological advancements. C) population growth economics. D) the new technology theory.
The classical theory of aggregate supply where markets are perfectly flexible
a. may or may not be compatible with the Keynesian system. b. is easily added the IS-LM framework of aggregate demand. c. is fundamentally incompatible with the Keynesian system. d. is consistent with the IS-LM framework if all shocks are to the IS curve. e. none of the above.