Using a good as a medium of exchange confers the benefit that
A) the need to quote so many prices in trade is reduced.
B) the need for a double coincidence of wants is greatly increased.
C) the need for specialization is reduced.
D) transactions costs are increased, but they now may be paid in money terms.
A
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How and why did Europe set up its single currency?
What will be an ideal response?
Keynesian monetary theory:
a) is the same as the classical theory in all essential elements. b) states that changes in the money supply have no impact on GDP in either the short or long run. c) states that an increase in the money supply leads to lower interest rates, which stimulates investment and aggregate demand. d) states that an increase in the money supply will lower interest rates and thereby shift the long-run aggregate supply curve to the right.
Refer to the above figure. Excess quantity demanded will exist when
A. quantity demanded equals 3. B. the price equals $10. C. the price equals $6. D. the price is between $0 and $6.
In a certain economy, the components of aggregate spending are given by: C = 500 + 0.8(Y - T) - 300rI = 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 4 percent?
A. 1,372 B. 3,810 C. 3,860 D. 762