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An asset with intrinsic value that serves as money as long as its value in exchange exceeds that intrinsic value is termed: Flat money. Representative money. Credit money. Commodity (full-body) money. Receipt value money. An increase in the assets of the Federal Reserve will: decrease the monetary base. increase the monetary base. have no effect upon the monetary base. have a large but unpredictable effect upon the monetary base. Under classical economic theory, when excess stocks of goods (inventories) accumulate in manufacturers' storage areas: national income is likely to fall, housing investment will also rise. inflation will increase. prices of goods and wages will decline. both b and c to occur. Monetarists believe that under the Quantity Theory of Money, all else being equal, an increase in the money supply will cause. consumption expenditures to rise along with prices (inflation). investment spending to fall. national income/output to fall. government expenditures to rise. all of the above to occur. Supply-side theorist believe which of the following strategies should be used to reduce unemployment and increase economic growth? increase government spending. increase the money supply. cut tax rates. all of the above should be used. both a and b only should be used

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