When you pay $8 for salad you ordered for lunch, you are using money as a(n)
A. store of value.
B. unit of account.
C. investment good.
D. medium of exchange.
Answer: D
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Suppose that the free market exchange rate for the dollar is 115 yen, but the U.S. and Japanese governments want it to be 120 yen/dollar. What can the governments do? Illustrate your answer with a graph
What will be an ideal response?
The essential functions of any central bank are:
A. preventing the formulation of monopolies or other market failure, and acting as a lender of last resort. B. managing the money supply, and acting as a lender of last resort. C. overseeing major business transactions, and managing the money supply. D. collecting taxes, and managing the supply of money.
The US state and local governments gains revenue from:
a. property taxes. b. revenue from money creation. c. customs. d. all of the above.
Which of the following measures gives the earliest warning of increasing inflation?
A. the Producer Price Index B. the Personal Consumption Expenditure Index C. the Consumer Price Index D. All of these should signal the same short-run inflation.