Fiat money
A) serves well as a medium of exchange, but not as a store of value.
B) has no or very little value except as money.
C) is rarely used in modern economies.
D) functions well only if can be redeemed for gold or other precious metals.
B
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An increase in the real interest rate ________ the quantity of loanable funds supplied and ________ the quantity of loanable funds demanded
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The long-run Phillips curve is a horizontal line at the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
What happens to the monetary base if the domestic currency is undervalued (the central bank fixed the exchange rate below equilibrium) and the central bank intervenes to fix the exchange rate at its current level?
a. The change in the monetary base is ambiguous. b. The monetary base is only affected by interventions of the central bank when the domestic currency is overvalued. c. The monetary base will rise. d. The monetary base is never affected by interventions of the central bank. e. The monetary base will fall.
Thirsty Thelma owns and operates a small lemonade stand. When Thelma is producing a low quantity of lemonade she has few workers and her equipment is not being fully utilized. Because she can easily put her idle resources to use,
a. the marginal cost of an extra worker is large. b. the marginal cost of one more glass of lemonade is smaller than if output were high. c. the marginal product of an extra worker is small. d. her lemonade stand is likely to be crowded with workers.