The value (purchasing power) of each unit of money
a. is largely independent of the money supply.
b. tends to increase as the money supply expands.
c. increases as the general level of prices rise.
d. is inversely related to the general level of prices.
D
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The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one can of cola if Sweet-tooth Land moves from point C to point B?
A) 20 chocolate bars per can of cola B) 10 chocolate bars per can of cola C) 2 chocolate bars per can of cola D) 1/2 chocolate bars per can of cola
About how many malnourished children under age five are there in the developing world?
a. 20 million b. 150 million c. 500 million d. 1 billion e. 2 billion
Which of the following bonds will have the highest yield-to-maturity if all three bonds appear identical to investors in terms of risk, liquidity, information costs, tax treatment?
A) one with a coupon of $50 B) one with a coupon of $100 C) one with a coupon of $200 D) none of the above
Which of the following does NOT involve transfers in kind?
A) public housing B) food stamps C) Medicare D) salaries of government employees