A farm worker gets paid today in money, but plans to spend the money next week. This illustrates which function of money?
A) medium of exchange B) standard of deferred payment
C) store of value D) unit of account
C
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Refer to Figure 12.6. Under a fixed exchange rate system, if the central bank can increase the output gap with expansionary policy and still maintain the fixed exchange rate, this would best be represented by a movement from ________ in Panel (a) and
a movement from ________ in Panel (b). A) point A to point B; point X to point Y B) point C to point A; point X to point Y C) point D to point C; point Y to point X D) point B to point D; point Y to point X
Your friend Dimitre tells you that he thinks that his favorite basketball team has a 70% chance of winning the next game. This is an example of
A) an objective probability. B) a subjective probability. C) a risk-averse statement. D) Friedman-Savage preferences.
Public goods are characterized by the free-rider problem because
A) no one can be excluded from the benefits of public goods once they are produced. B) public goods are usually things that people really do not want to consume. C) public goods are characterized by the principle of rival consumption. D) public goods can easily be subdivided into small units.
?Exhibit 10A-1 Aggregate demand and supply model
As shown in Exhibit 10A-1 and assuming the aggregate demand curve shifts from AD1and AD2, the full-employment level of real GDP is:
A. ?$12 billion. B. ?$8 billion. C. ?$150 billion. D. ?unable to be determined.