Money allows dissimilar goods and services to be valued according to a single common denominator—a nation's basic monetary unit, such as the dollar. Which of the following represents this function?
A. Medium of exchange
B. Store of value
C. Standard of value
D. Standard of deferred payment
C. Standard of value
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If the fiscal authority is focused on maintaining a balance of payments equilibrium, it is said to be pursuing
A) external balance. B) internal balance. C) payments balance. D) international peace.
An economy is considered to be in a recession if:
a. real GDP has declined for two consecutive quarters. b. it is moving from the peak toward the trough of the business cycle. c. it is moving from the trough to the peak of the business cycle.
If the price of inputs falls and the budget deficit rises due to an increase in government spending, then the:
a. Price index falls, and real GDP falls. b. Price index falls and the change in real GDP is uncertain. c. Price index is uncertain, and real GDP rises. d. Price index is uncertain, and real GDP falls. e. Neither the price index nor real GDP changes.
When we speak of capital, we refer primarily to money and financial assets such as bonds and stock.
Answer the following statement true (T) or false (F)