Which of the following is an example of fiat money?
A) a cowry shell used as money on a South Pacific island
B) a gold coin used as money in nineteenth century England
C) a Federal Reserve Note used as money in the twenty-first century United States
D) a pound of salt used as money in medieval France
C
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Poor people, who receive income assistance from the government, often do not work because
a. they face very high implicit marginal tax rates. b. they are usually not physically able to work. c. they have no desire for additional money. d. the government forces them to stay at home and take care of their children.
The act of buying a commodity in one market at a lower price and selling it in another market at a higher price is known as:
A. buying long. B. selling short. C. a tariff. D. arbitrage.