Money's function as a medium of exchange means that
A) money is a common denominator for expressing the prices of goods and services.
B) money can be used to store wealth.
C) money serves as an acceptable means of payment.
D) money requires a double coincidence of wants.
C
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The International View of the Great Depression blames the contraction in the U.S. economy on
(a) the failure of the U.S. markets to permit a fall in aggregate prices under the gold standard or to devalue its exchange rate. (b) exports' and imports' large proportion of total GDP in the U.S. (c) Great Britain abandoning the gold standard. (d) all of the above.
A(n) ____ can be used to demonstrate why a competitive oligopoly tends to result in a low-price strategy that does not maximize mutual profits
a. interdependence index b. gini coefficient c. herfindahl index d. payoff matrix
We can measure total production by:
A. adding up what people spend on final goods and services. B. adding up everyone's asset wealth. C. comparing cost of inputs to final sale price. D. adding up all spending in the economy on all goods and services.
If the inflation rate is 3 percent and the nominal wage is frozen for one year, by how much will the real wage change?
a. It will decrease by about 3 percent. b. It will not change. c. It will increase by 3 percent. d. It will triple. e. We do not have enough information to determine this answer.