The money supply is backed: Question 4 options:

1)

by the government's ability to control the supply of money and therefore to keep its value relatively stable.

2)

by government bonds.

3)

dollar-for-dollar by gold and silver.

4)

by gold reserves representing a fraction of the total value of dollars in circulation.

The money supply is backed: by the government's ability to control the supply of money and therefore to keep its value relatively stable.

Explanation:

If the price index rises from 100 to 120, the purchasing power value of the dollar: will fall by one-sixth.

a factory opens that mass-produces light bulbs.

explanation:

not sure if that's an answer to your questions but this is an example! : )