Question 16 15 pts [16] A government that needed to earn lots of revenue from its mint would he likely to 0 increase the mint price substantially. 0 choose a mint equivalent much higher than the mint price. 0 Both a and b. O Neithera nor b. Question 17 15 pts [17] The simple version of the quantity theory seems to predict that if the government mints new coins representing, in money-unit value, a particular percentage of the quantity of money in circulation. the level of prices will increase by the same percentage. In the examples involving coins that I presented in class, this prediction was 0 always accurate. 0 accurate if the coinswere made of silver, but not if they were made of gold. 0 never accurate. 0 accurate if all the coins in circulation were worth more, as money. than the value of their precious-metal contents. Question 18 15 pts [18] Milling was an attempt to solve a type of fraud committed by 0 private mints. 0 government mints. 0 people who obtained coins in trade. 0 None of the above. Question 19 15 pts [1?] Bills of exchange originally developed 0 to make trade between different cities easier. 0 because it was hard to determine the value of govemment-minted coins. 0 because there was a shortage of promissory notes. 0 as a way to allow governments to borrow from the public. Question 20 15 pts [20] A big disadvantage of bills of exchange as a method of payment was 0 their denominations were too large for transactions between business people. 0 they could be used in payment only once before they matured. 0 they traded at discounts that were difcult to calculate. 0 All of the above