The measure of money that best fulfills the medium of exchange function because it is most liquid is:
A. M1.
B. M2.
C. M3.
D. L.
Answer: A
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How is dollarization different from monetary union?
What will be an ideal response?
The monetary approach to interest rates assumes that the prices of goods are ________, which implies that a country's currency will ________, when nominal interest rates ________ because of ________ expected future inflation
A) perfectly flexible; depreciate; increase; higher B) perfectly flexible; appreciate; increase; higher C) immutable; depreciate; increase; higher D) immutable; appreciate; decrease; higher E) absolutely inflexible; depreciate; decrease; higher
Which of the following is TRUE in perfect competition at long-run equilibrium?
A) P = ATC = MC = MR B) ATC is minimized. C) Economic profit is $0. D) all of the above
The WTO
A) is an affiliate of the World Bank. B) is an organization created to oversee NAFTA. C) was established to resolve trade disputes among member nations. D) provides low interest loans to member nations to help develop their export industries.