The demand for money is based primarily on money's role as a(n):
a. measure of wealth
b. medium of exchange.
c. standard of economic well-being.
d. interest-bearing asset.
e. non-interest-bearing asset.
b
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Foreign direct investment declined worldwide during the recession of 2007-2009
The decline in foreign direct investment in developing countries can make it more difficult for these countries to break out of the vicious cycle of low economic growth and A) overpopulation. B) low saving and investment. C) low government spending. D) a low import/export ratio.
Refer to Scenario 8-1. The value of each canoe in gross domestic product equals
A) $1,200. B) $800. C) $500. D) $400.
Changes in the money supply are ________ to other economic variables, and since the early 1990s the Fed has ________ in monetary policymaking
A) closely connected; emphasized the role of M2 over M1 B) closely connected; emphasized the role of M1 over M2 C) closely connected; emphasized the roles of both M1 and M2 D) no longer closely connected; deemphasized the roles of M1 and M2
If a country fixes its exchange rate below the equilibrium value,
a. the central bank must buy its own b. there will be downward pressure on the exchange rate c. its currency will appreciate d. the result is an excess demand for that country's currency e. its currency will depreciate