You receive money as payment for babysitting your neighbors' children. This best illustrates which function of money?
a. medium of exchange
b. unit of account
c. store of value
d. liquidity
a
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How has the pattern of trade changed in the United States since 1960? What are the types of goods that are causing the shift in the balance of imports and exports in the United States?
What will be an ideal response?
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactions become more negative (or less positive). b. The GDP Price Index rises, and current international transactions become more positive (or less negative). c. Real GDP Price Index falls, and current international transactions rises. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The GDP Price Index falls, and current international transactions remains the same.
In which case, if any, will inflation remain higher after a temporary adverse supply shock?
a. both when the central bank maintains a higher money supply growth rate and when the central bank does nothing b. only if the central bank does nothing c. only if the central bank maintains a higher money supply growth rate d. None of the above is correct. Whether the central bank maintains a higher money supply growth rate or not, the inflation rate will return to its original level.
______ is responsible for over one-half of the gap in life expectancy between the U.S. and Canada.
a. Obesity b. Drug abuse c. Poor diet d. Alcohol consumption e. Smoking