The current monetary system in the United States is
A) a mix of fiat money and exchange using transactions deposits at banks.
B) a commodity money system.
C) a gold standard.
D) a commodity-backed fiat money system.
Question 2
The Ricardian Equivalence says
A) whatever the level of government expenses, consumption is the same.
B) whatever the timing of taxes, consumption is the same.
C) higher government expenses reduce consumption.
D) an increase in current consumption has to lead to a decrease in future consumption.
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A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...