Inflation reduces the ability of money to function as a
A) medium of exchange.
B) medium of value.
C) unit of account.
D) store of value.
Ans: D) store of value.
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Referring to the graph above, assume that, at first, the labor market is in equilibrium at point 4. In which scenario does unemployment rise, with no change in the quantity of employment?
A) real wage rises to the level of points 1 and 2 B) supply shifts to pass through point 5, with no change in the real wage C) demand shifts to pass through point 3, with no change in the real wage D) supply shifts to pass through point 3, with no change in the real wage
Necessities and luxuries are both types of normal goods
a. True b. False
Unemployment insurance payments act as automatic stabilizers by
a. allowing for more consumer spending during prosperity b. evening out workers' income over the business cycle c. creating higher budgets during a recession d. allowing for less consumer spending during a recession e. evening out differences between the Phillips and Laffer curves
Lead in the air is_____ than its 1975 level.
A. 97% more B. 99% less C. 3% less D. 3% more