Penny, an avocado farmer, wants to purchase a new desk that has been priced at $150. Avocados cost $2.50 each, so Penny knows that the desk is equal to 60 avocados. This illustrates money’s function as a ______.
a. means of deferred payment
b. store of value
c. medium of exchange
d. unit of account
d. unit of account
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Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000, the money supply
A. increases $100,000. B. increases $500,000. C. increases $600,000. D. decreases $500,000.
A bank's assets and liabilities are listed on a _____
a. balance sheet b. loan application c. deposit slip d. return statement
In the open-economy macroeconomic model, the supply of loanable funds comes from
a. national saving. Demand comes from only domestic investment. b. national saving. Demand comes from domestic investment and net capital outflow. c. Only net capital outflow. Demand for loanable funds comes from national saving. d. domestic investment and net capital outflow. Demand for loanable funds comes from national saving.
Refer to the graph shown that depicts a third-party payer market for prescription drugs. If the co-payment is $2 per pill, what will be the total market expenditures on prescription drugs?
A. $30 B. $540 C. $90 D. $270