Gerald wants to take out an insurance policy on his Pez dispenser collection, and reports to his insurance company that the collection is worth $25,000. This is an example of using money as a
A. medium of exchange.
B. unit of account.
C. standard of deferred payment.
D. store of value.
Answer: B
You might also like to view...
Refer to Table 15-1. The hypothetical information in the table shows what the values for real GDP and the price level will be in 2017 if the Fed does not use monetary policy
Which of the following policies makes sense if the Fed wants to keep real GDP at its potential level in 2017? A) The Fed should lower capital gains taxes. B) The Fed should lower the target for the federal funds rate. C) The Fed should pursue contractionary policy. D) The trading desk should sell Treasury securities.
Refer to Scenario 17.1. The highest level of y* that can be set and still have the high-productivity people choose to meet it is
A) 16. B) 13 1/3. C) 13. D) 8. E) 0.
In the monetarist version of the AD-AS framework, starting from long-run equilibrium, a decrease in velocity produces
A) no change in Real GDP in the short run or the long run. B) a rise in Real GDP in both the short run and the long run. C) a fall in Real GDP in both the short run and the long run. D) a fall in Real GDP in the short run, but not in the long run. E) no change in Real GDP in the short run, but a rise in the long run.
What determines the total value of aggregate demand for U.S. real GDP?
A. the Congressional Budget Office B. the Federal Reserve Board C. Wall Street D. the spending decisions of consumers, firms, and governments