Answer the following statements true (T) or false (F)
1. When you use money to purchase groceries, money is functioning as a store of value.
2. Money performs its function as a store of value very well, because it protects one against the erosion of purchasing power from inflation.
3. With token money, the face value is greater than the intrinsic value.
4. The M1 money supply is composed of currency, checkable deposits, and savings deposits.
5. Credit card balances are part of money supply M2.
1 False
2. False
3. True
4. False
5. False
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Controversy over the ECB includes all of the following, EXCEPT:
A) its poor performance in controlling euro inflation. B) its lack of accountability for its actions. C) its remoteness from democratic control. D) the perception that the central bank does not focus on problems related to European economic performance.
Which type of tariff is used to offset subsidies on exports entering the United States?
a. antidumping duties b. countervailing duties c. export duties d. safeguard duties levied under the escape clause
According to classical macroeconomic theory,
A. aggregate supply automatically adjusts to shifts in aggregate demand. B. demand creates its own supply. C. flexible prices, wages, and interest rates assure full-employment equilibrium. D. desired investment typically exceeds desired saving.
A major component of the money supply (M1) is:
A. checkable deposits. B. gold certificates. C. savings bonds. D. savings deposits.