What are the functions of money?
What will be an ideal response?
Money serves as a medium of exchange, which means it is accepted as payment. It serves as a unit of account in which prices are expressed. It also serves as a store of value and as a standard of deferred payment.
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A firm is more likely to use a labor-intensive method of production when the relative amount of available labor is greater than the available amount of capital
Indicate whether the statement is true or false
Which of the following is an interest rate target specified in the FOMC directive?
A) Discount rate B) Treasury bond rate C) Federal funds rate D) The prime rate
The main reason that the deficit grows in a recession is that
a. the government reacts quickly and adjusts taxes to compensate. b. monetary policy that targets interest rates causes the costs of borrowing to fall. c. the deficit causes the recession, and reducing the deficit cures the recession. d. many forms of taxes act as automatic stabilizers.
A pie chart is a way to display information regarding two variables
a. True b. False Indicate whether the statement is true or false