Which function of money represents a measure for stating the prices of goods and services?
A) medium of exchange
B) unit of account
C) store of value
D) means of payment
B
You might also like to view...
A firm will increase its spending on advertising until
A) it has monopolized the market. B) it has deterred all future entry. C) the marginal benefit of advertising is zero. D) the marginal benefit of advertising equals the marginal cost of advertising.
According to classical theory, if the aggregate demand curve decreased and the economy experienced unemployment, then:
a. the economy would remain in this condition indefinitely. b. the government must increase spending to restore full employment. c. prices and wages would fall quickly to restore full employment. d. the supply of money would increase until the economy returned to full employment.
Bank regulation differs from monetary policy, because:
a. Monetary policy is concerned with controlling and monitoring the conduct, performance, and condition of financial institutions, but bank regulation is concerned with changing the monetary aggregates. b. Regulation is concerned with changing reserve requirements, open market operations, and the discount rate, but monetary policy is concerned with changing the domestic interest rates. c. Regulation is concerned with changing domestic interest rates, but monetary policy is concerned with changing reserve requirements, open market operations, and the discount rate. d. Regulation is concerned with controlling and monitoring the conduct, performance, and condition of financial institutions, but monetary policy is concerned with changing the monetary aggregates.
Which of the following statements is correct?
a. Neither economic theory nor evidence from the U.S. economy suggests that there is a close link between productivity and real wages. b. Economic theory suggests that there is a close link between productivity and real wages, but evidence from the U.S. economy fails to confirm that link. c. Evidence from the U.S. economy suggests a close link between productivity and real wages, but economic theory provides no basis for such a link. d. Both economic theory and evidence from the U.S. economy suggest that there is a close link between productivity and real wages.