Between 1775 and 1780, $242 million of Continental Notes were printed. As the quantity of the Continentals multiplied,
a. the demand for these notes multiplied as well
b. their value depreciated
c. their value appreciated
d. banks on the European continent intervened to stabilize the value of the Continental notes
e. silver and gold became less valuable
B
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The certainty equivalent of a gamble is negative when tastes are risk loving.
Answer the following statement true (T) or false (F)
All of the following would be considered a positive addition to household wealth except
A) the equity in one's home. B) the balance in your savings account. C) 500 shares of Google stock. D) a credit card balance.
Which of the following is an assumption used by monetarists in establishing the quantity theory of money?
a) real GDP is equal to the multiplicative product of the money supply and the price level b) the velocity of money is constant c) households exhibit rational expectations d) households exhibit money illusion e) all of the above
Menu costs refer to:
A. the time, money, and effort one has to spend managing cash in the face of inflation. B. labor costs associated with inflation. C. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed. D. the money, time, and opportunity used to change prices to keep pace with inflation.