43. Which of the following does not explain what currently backs the money supply in the United States and gives the public confidence in the U.S. money supply? A. It is widely accepted in transactions. B. It is designated "legal tender" by the Federal government. C. It is 'backed' by precious metals, such as gold and silver. D. It is relatively scarce and its purchasing power changes slowly due to low rates of inflation.

Brief Principles of Macroeconomics (MindTap Course List)
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Chapter11: The Monetary System
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43. Which of the following does not explain what currently backs the money supply in the United States and
gives the public confidence in the U.S. money supply?
A. It is widely accepted in transactions.
B. It is designated "legal tender" by the Federal government.
C. It is 'backed' by precious metals, such as gold and silver.
D. It is relatively scarce and its purchasing power changes slowly due to low rates of inflation.
Transcribed Image Text:43. Which of the following does not explain what currently backs the money supply in the United States and gives the public confidence in the U.S. money supply? A. It is widely accepted in transactions. B. It is designated "legal tender" by the Federal government. C. It is 'backed' by precious metals, such as gold and silver. D. It is relatively scarce and its purchasing power changes slowly due to low rates of inflation.
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