The banking system’s ability to __________ money depends on people re-depositing the money that they receive into the banking system.
a. create
b. spend
c. save
d. grow
a. create
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An increase in the U.S. interest rate will most likely
A) reduce the attractiveness of investment in the United States. B) lead to a decrease in the value of the U.S. dollar. C) lead to an inflow of funds to the United States and an appreciation of the dollar. D) provide a stimulus to U.S. export industries.
If the prices of goods and services were expressed in terms of carved wooden beads, then the carved wooden beads would be serving as a:
A. medium of exchange. B. store of value. C. unit of account. D. mechanism for transforming present purchases into future purchases.
Suppose the current unemployment rate is 3 percent. If it rises to 4 percent
A. the economy will move closer to the production possibilities curve. B. the economy will move up along the production possibilities curve. C. the production possibilities curve will shift inward. D. the economy will operate farther inside the production possibilities curve.
The functions of money include
A) A store of value. B) A unit of accounting. C) A medium of exchange. D) All of the above.