The function of money that allows individuals a method to compare the relative value of goods and services is
A) liquidity. B) medium of exchange.
C) store of value. D) unit of accounting.
D
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The country of Stanley is at an above-full-employment equilibrium. Which of the following events will return Stanley to full employment?
A) an increase in government expenditures B) a decrease in the interest rate C) an increase in the money wage rate D) an increase in the quantity of money
According to Simon Kuznet's (1958) research, the pattern of immigration in 1865–1914
(a) showed long swings but not the short-term business cycle fluctuations. (b) showed no long swings in the 1820–1860 period, but did show the business cycle. (c) showed both business cycle patterns and long swing patterns. (d) unlike 1820–1860, showed neither short cycles nor long swings, but was instead a steady surge after the Civil War ended.
The marginal propensity to consume (MPC) is
a. the change in consumption divided by the change in disposable income b. total consumption divided by total disposable income c. the change in disposable income divided by the change in consumption d. total disposable income divided by total consumption e. the change in disposable income minus the change in consumption
Which of the following statements is false?
A) Keynes believed that monopolistic elements in the economy will prevent immediate price declines. B) Keynes believed that during periods of high unemployment, labor unions will prevent wages from falling fast enough to restore full employment. C) Keynes believed that interest rate flexibility will ensure that saving is equal to investment. D) Keynes did not believe in Say's law.