The __________ market liquidity is, the __________ the bid-asked spread will be
A) higher; wider
B) lower; narrower
C) higher; narrower
D) None of the above.
C
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You own $10,000 in personal property, $2,000 in Company X stocks, $1,000 in U.S. Savings Bonds and have $500 in your checking account. If Company X goes bankrupt, the most you could lose is
A) $13,500. B) $11,500. C) $2,000. D) $500.
The unit of value function of money refers to how we think about and record a transaction, whereas the means of payment function refers to how we actually pay for the items
a. True b. False
An unanticipated shift to a more expansionary macro-policy that leads to a higher-than-expected rate of inflation will
a. place downward pressure on prices. b. temporarily reduce unemployment. c. temporarily reduce output. d. temporarily reduce the natural rate of unemployment.
Which is true of the two budget lines drawn below? 
A. The absolute price of good Y is greater with budget line a than with budget line b. B. Line b and line a have the same nominal income. C. Line a has a higher nominal income than line b. D. The price of good X is larger with budget line a.