Representative Full-Bodied Money Is Paper Money That Is Backed by an Amount

question 53

True/False

Representative full-bodied money is paper money that is backed by an amount of precious metal equal in value to the face amount of the paper money.

---

Definitions:

Income Elasticity

A measure of how the demand for a good or service changes with a change in consumers' income.

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Income Elasticity

A measure of how much the demand for a good or service changes with a change in consumers' income, indicating the nature of the good as either a necessity or a luxury.