Which of the following will occur when an economy's price level increases?
A. The purchasing power of money will increase.
B. The purchasing power of money will decrease.
C. The real value of wealth will increase.
D. Aggregate demand will increase.
Answer: B
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To be accepted as money, an item must perform all of the following functions EXCEPT
A) be a medium of exchange. B) serve as a store of value. C) be easily reproduced. D) serve as a standard of deferred payment.
The decline in traditional banking internationally can be attributed to
A) increased regulation. B) improved information technology. C) increasing monopoly power of banks over depositors. D) increased protection from competition.
Refer to Table 5.3. In order to weigh which of the job choices is riskiest, an individual should look at
A) the deviation, which is the difference between the probabilities of the two outcomes. B) the deviation, which is the difference between the dollar amounts of the two outcomes. C) the average deviation, which is found by averaging the dollar amounts of the two outcomes. D) the standard deviation, which is the square root of the average squared deviation. E) the standard deviation, which is the squared average square root of the deviation.
Advertising is used by firms to increase their price elasticities of demand
Indicate whether the statement is true or false