Explain whether the following statements are true, false or uncertain: a. A unit of account is...
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Explain whether the following statements are true, false or uncertain: a. A unit of account is necessarily a medium of exchange. b. An economy is under a fiat money system when its citizens make payments with paper money. c. A higher market interest rate will increase the quantity of money supplied. d. The monetary base is the sum of currency outside the banking system and currency inside the banking system, the latter being bank reserves. e. In times of crises, the government can issue bonds to raise funds and then provide liquidity to the market, so it serves as lender of last resort. f. The M1 money multiplier is larger than the M2 money multiplier. Explain whether the following statements are true, false or uncertain: a. A unit of account is necessarily a medium of exchange. b. An economy is under a fiat money system when its citizens make payments with paper money. c. A higher market interest rate will increase the quantity of money supplied. d. The monetary base is the sum of currency outside the banking system and currency inside the banking system, the latter being bank reserves. e. In times of crises, the government can issue bonds to raise funds and then provide liquidity to the market, so it serves as lender of last resort. f. The M1 money multiplier is larger than the M2 money multiplier.
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The detailed answer for the above question is provided below A False A unit of account is a measure of value used in accounting and is not necessarily ... View the full answer
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