The transactions approach to measuring money stresses the role of money as a
A. store of value.
B. medium of exchange.
C. standard of deferred payment.
D. unit of accounting.
Answer: B
You might also like to view...
If the real interest rate is lower than the equilibrium real interest rate:
A) the quantity of credit demanded equals the quantity of credit supplied. B) the quantity of credit demanded falls short of the quantity of credit supplied. C) the quantity of credit supplied falls short of the quantity of credit demanded. D) interest rates tend to fall further.
During World War II (1941–45), Engel's law applied. As income rose, consumption of food dropped relative to all other goods and services purchased
Indicate whether the statement is true or false
Suppose the economy is in a prosperity phase of the business cycle. Employment is high and in the month of August, new demand deposits amounted to $15,000 billion, which supported a total increase (including the $15 billion) of $75,000 billion, which is the maximum allowable. The potential money multiplier, then,
a. must be 5 b. must be 2 c. must be 0.50 d. must be 0.20 e. cannot be determined from the information given
Attempts to fine-tune the economy through counter-cyclical fiscal policy
A) demonstrated their effectiveness in the 1930s.
B) demonstrated their effectiveness during World War II.
C) demonstrated their effectiveness between 1945 and 1960.
D) have not yet demonstrated their effectiveness.