Commodity money has value only because people have put faith in the money and accept that it has value
a. True
b. False
Indicate whether the statement is true or false
False
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An autonomous monetary policy easing ________ real interest rates and ________ output in the short run, thereby ________ stock prices
A) raises; lowers; lowering B) raises; raises; raising C) lowers; raises; raising D) lowers; raises; lowering
We calculate the amount of physical capital in an economy by adding up the value of all:
A. tools, equipment, and structures. B. skills and expertise of all employed people. C. skills and expertise of the working age population. D. technological capabilities used in production.
Which of the following would occur as a result if Europe experienced a lower inflation rate than the U.S.? a. European products would become more expensive to U.S. consumers
b. It would decrease the quantity of European goods demanded by Americans. c. It would decrease the demand for Euros. d. None of the above would occur.
When managers of firms in a competitive market observe falling profits, they may infer that the market is experiencing
a. a violation of conventional market forces. b. over-investment. c. the entry of new firms. d. too few firms in the market.