Which of the following statements is false?
a. Round stones with holes in the center can serve as money.
b. Money eases the process of exchanging goods and services in a modern economy.
c. Money serves as a measure of value only when it is backed by gold or silver.
d. Money is used as a measure of the relative value of goods and services in an economy.
c
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Describe the differences between classical and Keynesian economists in terms of their views about monetary neutrality
What will be an ideal response?
An increase in income, holding prices constant, can be represented as:
A) a change in the slope of the budget line. B) a parallel outward shift in the budget line. C) an outward shift in the budget line with its slope becoming flatter. D) a parallel inward shift in the budget line.
This year, on advice from your sister, you bought tobacco company stock at $50/share. During the year, you collected an $8 dividend, but due to the company's losses in medical lawsuits its stock fell to $40/share
At this point, you sell, realizing a A) dividend yield of -16% and a capital loss of 20%. B) dividend yield of 16% and a capital loss of 20%. C) dividend loss 10%. D) capital loss of 10%. E) total loss of 20%.
The demand for foreign currency in the United States is a
A) direct demand. B) derived demand based on the demand for U.S. products. C) derived demand based on the demand for foreign products. D) direct demand based on the demand for U.S. dollars.