Money eliminates the need for a coincidence of wants in trading primarily through its role as a
A. store of value.
B. unit of account.
C. medium of deferred payment.
D. medium of exchange.
Answer: D
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Holding everything else constant, the U.S. real exchange with India will increase if the rupee depreciates
Indicate whether the statement is true or false
Accounting that relates how growth in inputs of production are related to growth in output is called:
A. input to output accounting. B. national income accounting. C. production accounting. D. growth accounting.
Suppose the government has a budget deficit of $2 billion. If the Ricardo-Barro effect is correct, then how much crowding out of investment occurs?
A) exactly equal to $2 billion dollars
B) more than $2 billion
C) some crowding out occurs, but less than $2 billion
D) No crowding out occurs and investment does not change.
E) No crowding out occurs because investment increases by $2 billion.
Which of the following will increase commercial bank reserves?
A. The purchase of government bonds in the open market by the Federal Reserve Banks B. An increase in the reserve ratio C. An increase in the discount rate D. The sale of government bonds in the open market by the Federal Reserve Banks