What characteristic defines something as money?
A) assets declared by the government to be of value
B) a medium of exchange widely accepted in an economy
C) notes you can deposit in a savings account
D) an asset that earns interest
B
You might also like to view...
An economy's capital stock is increased when individuals and institutions use savings to increase capital investment in stocks and bonds
Indicate whether the statement is true or false
Everything else held constant, an autonomous tightening of monetary policy will cause
A) the quantity of aggregate demand to increase. B) the quantity of aggregate demand to decrease. C) aggregate demand to increase. D) aggregate demand to decrease.
Which among the following does not determine the shape of the demand curve for a good under different market structures?
a. Number of substitutes in the market b. Importance of the good in a consumer's budget c. Cost structure of the firm d. Price-elasticity of demand e. The length of time being considered
Suppose that the price elasticity of supply is 0.8 and the price increases by 10%. We would predict:
A. an 8% increase in quantity supplied. B. a 12.5% increase in quantity supplied. C. a 0.8% increase in quantity supplied. D. a 1.25% increase in quantity supplied.