If a person buries his money in his backyard, he is using money as a medium of exchange
a. True
b. False
Indicate whether the statement is true or false
False
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Measuring expenditures and income with the price level held constant, so that any changes in these values represent changes in the actual amount of goods, services, and income is denoted in ________ terms
A) nominal B) real C) constant dollar D) all of the above
Contrary to popular belief, U.S. productivity growth did not actually improve in the mid 1990s despite the massive growth in technological innovation
a. True b. False Indicate whether the statement is true or false
Clorox Bleach and generic brands have the exact same proportions of chlorine and other active ingredients. The reason that people continue to purchase Clorox at twice the price of the generic brand is the
a. price elasticity of demand classifies them as belonging to the same market b. low cross elasticity between Clorox and the generic brand c. high cross elasticity between Clorox and the generic brand d. perceived differences on the part of consumers e. income elasticity of demand is higher for the Clorox brand
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. The GDP Price Index rises and nominal value of the domestic currency
falls. b. The GDP Price Index falls and nominal value of the domestic currency remains the same. c. The GDP Price Index rises and nominal value of the domestic currency remains the same. d. The GDP Price Index rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.