As an economy produces more different types of goods:
A. money becomes less useful as a standard of value.
B. it is more difficult to quote prices if the economy does not use money.
C. money becomes less useful as a unit of account.
D. the number of relative prices decreases.
Answer: B
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The government deficit does NOT place a burden on future generations when
A) taxes are eventually raised to pay interest on the additional debt. B) the borrowed funds are used for productive government investment. C) borrowing from foreigners offsets the deficit, so that private investment is not crowded-out. D) the borrowed funds are transferred to the purchase of nondurable consumer goods.
Which of the following three actions would not be used by the Fed to influence interest rates?
a. selling securities b. buying stocks c. setting reserve requirements d. changing the discount rate e. moral suasion
"Stagflation" refers to the unwelcome combination of
a. inflation and rising prices. b. deflation and unemployment. c. inflation and unemployment. d. inflation and expansion.
The low point of the Great Depression was reached in the year
A. 1929. B. 1931. C. 1933. D. 1935.