When in France you notice that prices are posted in euros, this best illustrates money's function as
a. a store of value.
b. a medium of exchange.
c. a unit of account.
d. a method of barter.
c
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Saving $100 will:
A. increase wealth by $100. B. decrease wealth by $100. C. increase wealth by $100 only if the $100 is used to repay a debt. D. increase wealth by $100 only if the $100 is used to purchase an asset.
Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy
If the effect on aggregate supply was larger than the figure above shows, as a result the price level would be ________ 110 and real GDP would be ________ $17 trillion. A) equal to; equal to B) equal to; larger than C) higher than; larger than D) smaller than; less than E) smaller than; larger than
A possible sequence for the three stages of a financial crisis might be ________ leads to ________ leads to ________
A) asset price declines; banking crises; unanticipated decline in price level B) unanticipated decline in price level; banking crises; increase in interest rates C) banking crises; increase in interest rates; unanticipated decline in price level D) banking crises; increase in uncertainty; increase in interest rates
Which of the following would be evidence against rational expectations?
a. unpredictable changes in policy have real effects. b. new information leads to changes in output. c. the public never make mistakes with respect to price level predictions. d. changes in stock prices change much more often than new information becomes available.