What Determines the Acceptability of Dollar Bills as a Medium

question 34

Multiple Choice

What determines the acceptability of dollar bills as a medium of exchange?

• A)Our society's willingness to use green paper notes issued by the Federal Reserve as money
• B)The willingness of the Federal Reserve to redeem dollar bills for gold
• C)The willingness of the U.S. Treasury to redeem dollar bills for gold
• D)The public's fear that failing to accept dollar bills will trigger a hyperinflation

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Definitions:

Regression Models

Statistical models used to estimate the relationship between a dependent variable and one or more independent variables.

Extrapolated

The process of estimating beyond the original observation range by assuming that existing trends continue.

Multiple R

A statistic that represents the correlation between observed and predicted values of a dependent variable in a regression analysis, indicating model fit.

R Square

The ratio of the variance in the outcome variable that can be attributed to the influence of predictor variables in a regression analysis.