Liquidity can be defined as the
A. cash value of money.
B. value of money adjusted for inflation.
C. value of fiat money when used for spending.
D. ease with which an asset can be converted to a spendable asset.
Answer: D
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Everything else equal, a depreciation of the dollar against the yuan:
A) will not affect the quantity of dollars demanded. B) will lead to a decrease in the quantity of dollars demanded. C) will lead to an increase in the quantity of dollars demanded. D) can either lead to an increase or a decrease in the quantity of dollars demanded depending on the magnitude of the depreciation.
If the consumer price index was 100 in the base year and 106 in the following year, then the inflation rate was
a. 1.06 percent. b. 6 percent. c. 10.6 percent. d. 106 percent.
When foreigners come to the United States as tourists, they are generating a
A. Supply of U.S. dollars and a supply of a foreign currency. B. Supply of U.S. dollars and a demand for a foreign currency. C. Demand for U.S. dollars and a supply of a foreign currency. D. Demand for U.S. dollars and a demand for a foreign currency.
Equilibrium price is the price at which the quantity of a product demanded by consumers and the quantity supplied by producers
a. are different b. are equal c. is higher for the product demanded d. is higher for the product supplied