If something is to serve as money it must be a store of value. This means that it must
A) be divisible.
B) be the standard by which all goods are compared in setting prices.
C) hold its purchasing power over time.
D) be liquid.
C
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Which of the following is an example of discretionary fiscal policy?
A) a decrease in income tax receipts with falling income during a recession B) tax cuts passed by Congress in 2008 to combat the recession C) a decrease in food stamps issued during an expansion D) an increase in unemployment insurance payments during a recession
In the above figure, assuming Firm 1 and Firm 2 are the sole producers in the industry, the industry quantity supplied at price P1 is equal to
A) Q1 + Q2. B) Q1 + Q3. C) Q2 + Q4. D) Q4 - Q2.
Which of the following most accurately indicates changes in the size of the union sector in the United States?
a. As a share of the labor force, union membership grew substantially during 1935 through 1955 but has declined substantially since the mid-1950s. b. As a share of the labor force, union membership declined substantially during 1935 through 1955 but has grown substantially since the mid-1950s. c. As a share of the labor force, union membership has steadily grown from less than 10 percent in 1935 to more than 40 percent today. d. Union membership has been approximately 20 percent of the labor force during the last five decades.
The interest-rate effect is partially explained by the fact that a higher price level reduces money demand
a. True b. False Indicate whether the statement is true or false