Holding money as a medium of exchange to purchase goods and services and make payments is known as the
A. transactions demand for money.
B. spending demand for money.
C. asset demand for money.
D. precautionary demand for money.
Answer: A
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Possible sources of an upward bias in the CPI include the
a. quantity adjustment bias. b. substitution bias. c. new products bias. d. Both b and c e. All of the above
Darren loves to go to the movies, and he just learned that he can buy a ticket at a discounted price using his student ID. Darren now attends movies even more often. Which of the following factors of demand caused the change in Darren's behavior?
A. Income B. Price C. Preferences D. Number of buyers
Which of the following Fed actions would both increase the money supply?
a. buy bonds and raise the reserve requirement b. buy bonds and lower the reserve requirement c. sell bonds and raise the reserve requirement d. sell bonds and lower the reserve requirement
Which of the following would be considered an implicit cost of operating a business?
A) shipping expenses B) Social Security contributions for employees C) the resale value of delivery vans the company owns and uses for its deliveries D) interest payments on a loan