Commitments to make or receive payments in the future are made easier by money's function as a _____
a. unit of account
b. store of value
c. medium of exchange
d. form of barter
e. commodity
b
You might also like to view...
Assume a closed economy, that taxes are fixed, and the marginal propensity to consume is equal to 0.8. What is the government spending multiplier?
A) 10 B) 5 C) 4 D) 3
The interest rate on secondary credit is set ________ basis points ________ the primary credit rate
A) 100; above B) 100; below C) 50; above D) 50; below
The theorists of the rational expectations school:
a. favor monetary rules because they believe individuals know too little about how the economy works b. favor monetary rules so that workers and firms do not get any unanticipated surprises from the Fed. c. are those who favor an "active approach" to policy and reject monetary rules. d. oppose any monetary rules because they believe rules impede the natural self-correcting mechanism of the economy. e. do not believe in implementing discretionary policies.
Ace has always been a top student, so it was no surprise he won a $1,500 scholarship from the company where he worked summers to help with college expenses. Ace decides to spend his scholarship money on a new Apple MacBook. How will GDP be affected by Ace's recent purchases?
A. Consumption will go up by $1,500, because a computer is a nondurable good. B. Consumption will go up by $1,500, because a computer is a durable good. C. Investment will go up by $1,500, because a computer is a durable good. D. GDP will not be affected, since Ace acquired the computer with scholarship money.