If lenders refuse to state the debt in terms of dollars, then dollars are NOT a
A. medium of exchange.
B. unit of accounting.
C. store of value.
D. standard of deferred payment.
Answer: D
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One difference between perfect competition and monopolistic competition is that
A) a perfectly competitive industry has fewer firms. B) in perfect competition, firms produce slightly differentiated products. C) monopolistic competition has barriers to entry. D) firms in monopolistic competition face a downward-sloping demand curve.
Savings accounts pay very low rates of interest. The average return on the stock market is about 10-12%, in the long run. Why would anyone put money into a savings account?
What will be an ideal response?
The primary tool of monetary policy is:
A. the discount rate. B. the reserve requirement. C. open market operations. D. the prime rate.
According to the textbook, monetary policymaking is most accurately described as:
A. both an art and a science. B. a science due to detailed models used. C. an art since human judgments are necessary. D. superior to other policies, since it is conducted by economists.