The Use of Counterfeit Money Leads To

question 377

Multiple Choice

The use of counterfeit money leads to:

• A)costs for a government only if government has endorsed fiat money.
• B)losses only if consumers recognize that counterfeit money is present.
• C)lost revenue to pay for operations of the economy's government.
• D)problems only when commodity-backed money is used.

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Definitions:

Full Employment GDP

The output level of an economy when all available resources are employed efficiently, corresponding to a situation with no cyclical unemployment.

Classical Range

In economics, refers to the level of output where all resources are fully employed, and prices are flexible, historically associated with the Classical theory of economics.

Savings

Money that is set aside from disposable income or after personal expenses have been covered, often put into a deposit or an investment for future use.

Wealth Effect

The change in spending and consumption patterns caused by changes in perceived wealth.