A method of measuring the money supply by looking at money as a temporary store of value is the
A) transactions approach. B) capital control.
C) liquidity approach. D) fiduciary monetary system.
C
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Joe Doakes is running for reelection. Economic theory predicts he has a strong incentive to
A) heavily discount the value of all future costs of his policies. B) try to provide as many benefits to his constituents as possible prior to the next election day. C) do both A and B above. D) do none of the above.
Increases in real GDP since 1900 can actually underestimate growth in the standard of living for Americans since 1900 because
A) the crime rate was higher in 1900 than it is today. B) goods and services are more expensive today as compared to 1900. C) the quality of health care that exists today was not available in 1900. D) the level of pollution in 1900 was much higher than it is today.
If you want to earn a real interest rate of 3% on money you lend, and you expect that inflation will be 2%, what nominal rate of interest will you charge?
A) 1% B) 5% C) 6% D) 9%
In the short run, one reason why we do not define "full employment" as 0 percent unemployment is because
A. Of the direct relationship between unemployment and inflation. B. 0 percent unemployment is consistent with price stability. C. The closer the economy gets to capacity output, the greater the risk of inflation. D. Of the vertical aggregate supply curve.