Which functions of money could each item fulfill?
Answer:
Medium of exchange function of money depicts that money is used for the buying and selling of goods. Money as a medium of exchange facilitate the transaction.
Store of value function of money depicts that money could store its vlaue over a period of time and could be used in future.
Unit of aacount function of money depicts that money provides common measure of the value of goods and services.
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Which of the following policies would be expected to increase private saving?
A. Reducing the tax rate on capital gains and dividends. B. Increasing the income tax. C. Increasing job security. D. Providing more generous Social Security retirement benefits.
When the Fed adopts an expansionary monetary policy: a. the demand for investment curve shifts to the left
b. the demand for investment curve shifts to the right. c. there is a downward movement along the demand for investment curve. d. there is an upward movement along the demand for investment curve. e. there is no impact on the demand for investment curve.
If the government were to increase income taxes, we would predict:
A. a downward movement along the aggregate demand curve. B. a shift in aggregate demand to the right. C. a shift in aggregate demand to the left. D. an upward movement along the aggregate demand.
Which of the following is correct regarding why interest rates differ for different people or businesses, or for things like business loans, mortgage loans, student loans, and car loans?
a. Interest rates tend to be lower for those borrowers judged to be less likely to repay their loan. b. Interest rates tend to be higher for loans extended for shorter periods of time. c. The cost of administering one large loan will tend to be higher than the cost of administering the same amount of money extended to borrowers through many small loans. d. Interest rates tend to be lower for those borrowers judged to be more likely to repay their loan.