If the Treasury Mints More Coins and Sends Them to the Fed

question 15

Multiple Choice

If the Treasury mints more coins and sends them to the Fed,

• A)the monetary base will rise.
• B)the monetary base will fall.
• C)the monetary base will be unaffected.
• D)the monetary base may rise or fall depending upon whether the public's demand for coins has risen or fallen.

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Definitions:

Minimum Wage

The lowest legal hourly wage that employers can pay to workers, set by government regulation.

Labor Shortage

A situation in which employers have difficulty filling vacancies because there are not enough available workers with the necessary skills.

Unemployment

The situation where individuals who are capable of working and are actively seeking employment are unable to find a job.

Binding Price Ceiling

A government-imposed maximum price on goods or services that is set below the market equilibrium price, leading to shortages.