The three functions of money are:
A. serving as a medium of exchange, unit of account, and store of value.
B. implementing monetary policy, fiscal policy, and structural policy.
C. spending for consumption, investment, and government purchases.
D. measuring balance of payments, exchange rates, and interest rates.
Answer: A
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What factors affect the demand for money?
What will be an ideal response?
What is the free-rider problem? What results from the free-rider problem? What is a solution to the free-rider problem?
What will be an ideal response?
How were open market operations conducted prior to 1935?
A) They were carried out by the Federal Open Market Committee. B) They were carried out under the direction of the Secretary of the Treasury. C) They were carried out by the district Federal Reserve banks. D) They were carried out by the Banking Committee of the House of Representatives.
Other things the same, when the price level falls, interest rates
a. rise, which means consumers will want to spend more on homebuilding. b. rise, which means consumers will want to spend less on homebuilding. c. fall, which means consumers will want to spend more on homebuilding. d. fall, which means consumers will want to spend less on homebuilding.