Even when people know the purchasing power of the currency is declining, they continue to use the currency because
A) they have no other choice.
B) its value is holding better than any other asset.
C) its value is still predictable.
D) it still has some intrinsic value.
C
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Refer to Table 4-8. What is the equilibrium hourly wage (W*) and the equilibrium quantity of labor (Q*)?
A) W* = $8.50; Q* = 380,000 B) W* = $8.50; Q* = 360,000 C) W* = $9.00; Q* = 370,000 D) W* = $9.00; Q* = 740,000
Which of the following statements is correct? In the special case of the 100-percent reserve banking the money multiplier is
a. 0 and banks create money. b. 0 and banks do not create money. c. 1 and banks create money d. 1 and banks do not create money.
In a competitive market, maximum efficiency is achieved because of:
A.) Competitive pressure on prices. B.) Differentiated products. C.) High barriers to entry. D.) Significant market power.
Refer to Exhibit 2-6. Which graph depicts the result of a decrease in the unemployment rate?
 ANSWER 7.png)