1.If the cost of living index rises, the purchasing power of the dollar will:

a.It can increase or decrease.

b.Increase.

c.Decrease.

d.Remain unchanged.

2. If the price level rises, the real value of money will:

a.Decrease.

b.It can increase or decrease.

c.Remain unchanged.

d.Increase.

3.Until what date were commercial banks in Canada empowered to issue their own bank notes?

a.1867.

b.1935.

c.1914.

d.1696.

e.1896.

4.Which of the following has the same meaning as LAS?

a.Potential GDP.

b.Unemployment GDP

c.Economic capacity.

d.Minimum efficient scale.

5.Which of the following have been used in the past as commodity money?

a.Silver.

b.Salt.

c.Gold.

d.All three have been used as commodity money.