What allows a Federal Reserve note to function as money?
A. Regulation
B. Banks
C. Government
D. Social convention
Answer: D
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If the Fed raises the federal funds rate, which of the following occurs?
A) Consumption expenditure decreases. B) Investment increases. C) The price of the dollar on the foreign exchange market increases. D) Net exports increase. E) Aggregate demand increases.
Compared to a direct cash transfer payment of an identical amount, food stamps make individuals who desire less food than the value of the food stamps _____
a. better off b. worse off c. indifferent between food and all other goods d. prefer food too all other goods on the margin
If something is a unit of account, then it:
a. serves as a yardstick for measuring the relative value of other goods b. is a means of holding wealth for the future c. is fairly stable d. is durable and portable e. is accepted as payment for any purchase
According to economic reasoning, you should follow Nike's advice and "Just Do It" when
A) the additional costs are the same as the additional benefits. B) the additional costs are greater than the additional benefits. C) the additional benefits are greater than the additional costs. D) the total benefits are less than the total costs.