When money is used to compare the relative price of a burrito and a taco, money is being used as a
A) medium of exchange.
B) store of value.
C) measurement of inflation.
D) unit of account.
E) token of bartering.
D
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Assuming all else equal, a rise in the rate of interest:
A) results in a fall in the cost of borrowing. B) results in a fall in the amount of interest accumulated on a loan. C) results in a fall in the quantity of credit demanded. D) results in an increase in the number of potential debtors.
What has been the reaction of many governments to the failure of central planning?
What will be an ideal response?
If, after a person buys a set of goods with his/her income and total utility is not maximized, then
a. some change in the composition of the goods bought will increase utility b. we know that the prices were not equal c. we know that the MU/P for all goods had to be equal d. we know that marginal utility of the last good purchased was higher than the total utility of the set of goods bought e. the law of diminishing marginal utility does not apply in this case
Which of the following will not increase the money supply in the United States?
A) lowering the required reserve ratio B) Fed purchases of government securities on the open market C) lowering the discount rate relative to the federal funds rate D) Fed sales of government securities on the open market E) none of the above